Question

'Deficit Financing' means _________.

• A. relying on foreign aid
• B. spending by borrowing from abroad
• C. not spending enough to ensure development
• D. spending in excess of revenues

Answer 1

Answer: (D)

spending in excess of revenues

Deficit financing, practice in which a government spends more money than it receives as revenue, the difference is filled up by borrowing or printing new currency.