[amp_mcq option1=”Government revenue exceeds expenditure” option2=”Government expenditure exceeds revenue” option3=”Government revenue equals expenditure” option4=”Zero taxation” correct=”option2″]
The correct answer is: B) Government expenditure exceeds revenue.
Deficit financing is the practice of a government spending more money than it takes in through taxes and other revenue. This can be done by borrowing money, printing money, or selling assets. Deficit financing is often used to finance government programs or to stimulate the economy.
Option A is incorrect because government revenue exceeding expenditure would be a surplus.
Option C is incorrect because government revenue equaling expenditure would be a balanced budget.
Option D is incorrect because zero taxation would not generate any revenue for the government.