What situation would result if Government expenditure exceeds the Government revenue on Current Account?
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What situation would result if Government expenditure exceeds the Government revenue on Current Account?
✓ Correct answer: a) Deficit budgeting
ExplanationGovernment expenditure > Government revenue on current account means spending is higher than income.This gap between income and expenditure creates a shortfall.Such a shortfall in the budget is termed as a deficit.Hence, the correct answer is "Deficit budgeting".
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