What does the fiscal deficit in a government budget represent?

Multiple choice question for Basic of Economics. Select an option, then review the explanation below.

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The sum of revenue deficit and the government's net borrowingsThe total budget deficit combined with the government's net borrowingsThe aggregate of capital deficit and revenue deficitPrimary deficit reduced by the capital deficit

Explanation

Fiscal deficit refers to the total budget deficit along with the government's net borrowings. It indicates the excess of total expenditure over total receipts, excluding borrowings.

Practice related questions from the same subject.

1.Which of the following best describes deflation?
2.Under what condition can two nations benefit from engaging in international trade?
3.Which of the following represents a legitimate form of currency?
4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?

What does the fiscal deficit in a government budget represent?

Explanation

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