Question

The term "fiscal deficit" primarily indicates:

• A. The total amount of national debt accumulated by the government.
• B. The difference between the value of a country's exports and imports.
• C. The extent to which the government's total expenditure exceeds its total revenue (excluding borrowings).
• D. The rate at which the general level of prices for goods and services is rising.

Answer 1

Answer:

C. The extent to which the government's total expenditure exceeds its total revenue (excluding borrowings).

• A fiscal deficit shows how much the government needs to borrow to fund all its spending after accounting for all its regular revenues.