5.2.1.2 - Fiscal Deficit
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Practice Questions
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Define fiscal deficit.
💡 Hint: Think about when the government has to borrow money.
What is revenue deficit?
💡 Hint: Consider what happens if a government's spending is more than its income.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the definition of fiscal deficit?
💡 Hint: Think of it as needing to borrow money.
True or False: A revenue deficit indicates the government is saving.
💡 Hint: Consider what a deficit means for savings.
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Challenge Problems
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A government has total planned expenditures of $200 billion, with $150 billion coming from revenue. How does a $20 billion increase in operational expenses affect its fiscal and primary deficits?
💡 Hint: Consider the impact of raises in operational costs.
Evaluate the long-term consequences for an economy that consistently runs a fiscal deficit for a decade.
💡 Hint: Think about future financial policies and public perception.
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