QQuestionEconomics
QuestionEconomics
"High government expenditures can lead to a bigger
A. revenue
B. stimulus
C. deficit
D. surplus
"
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Answer
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Step 1Let me solve this economics problem step by step:
Step 2: Understand the Key Economic Concept
The question is asking about the relationship between government spending and budget outcomes. When government expenditures exceed its revenue, this creates a budget condition known as a deficit.
Final Answer
Explanation: When government spending is high and exceeds its revenue collection, it creates a budget deficit, which means the government must borrow money to cover its expenses. This is a fundamental concept in public finance and macroeconomic policy.
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