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FOREX Policy

A budget is u...

Question

A __________ budget is useful during periods of high inflation.

A

deficit

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B

balanced

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C

suprlus

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D

zero-based

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Solution

The correct option is C suprlus
Surplus Budget is the type of budget where the expected government revenue is greater than expected government expenditure due to which there is a surplus in the budget. Surplus budget is regarded as a positive indicator for the economy as it can be used during inflation through increased revenue that can soak liquidity from the economy and decrease the purchasing power.

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