The volume of public expenditure increases with an increase in state activities and thereby the government borrows money which leads to

Public debt

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Public money

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Public expenditure

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Public revenue

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A
Public debt

The volume of public expenditure increases with an increase in state activities. The government cannot meet all the expenses through the normal revenue sources. Hence, the government borrows money which leads to public debt.

Suggest Corrections

Similar questions

Which of the following aspect of public finance is correct, if the theory of public finance deals only with public revenue, public expenditure and public debt in an objective manner?

Q. When the government tries to meet the gap of public expenditure and public revenue through borrowing, it is called ____________.

Q. Public revenue always exceed public expenditure.

Q. Fiscal policy is related with public revenue and public expenditure.

Q. Choose the correct option.

Statement I: Public expenditure increases with an increase in population and modernisation.

Statement II: Over the years, the public expenditure of India has decreased.

Join BYJU'S Learning Program

The volume of public expenditure increases with an increase in state activities and thereby the government borrows money which leads to

The correct option is A Public debt The volume of public expenditure increases with an increase in state activities. The government cannot meet all the expenses through the normal revenue sources. Hence, the government borrows money which leads to public debt.

The correct option is A
Public debt

The volume of public expenditure increases with an increase in state activities. The government cannot meet all the expenses through the normal revenue sources. Hence, the government borrows money which leads to public debt.