Question

What is a "deficit financing"?

• A. Increasing taxes to cover government spending
• B. Selling government assets to fund public services
• C. Reducing government expenditure to balance the budget
• D. Borrowing money to meet the fiscal deficit

Answer 1

Answer:

D. Borrowing money to meet the fiscal deficit

• Deficit financing is the process of raising funds to meet the government's spending needs when its revenue is insufficient, typically by borrowing from the market or from the central bank.