PPSCFPSCNTSPakistan govt jobs
- Subject
- Stockseconomics-mcqs › stocks
- Published
- 30 May 2019
- Last updated
- 28 May 2026
Explanation
When the government spends more than it earns through taxes, it results in a budget deficit. This means expenditures exceed income, requiring borrowing or other financing methods.
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Practice related questions from the same subject.
- 1.What is the effect of an increase in the budget surplus on the market for loanable funds?
- 2.What happens to real interest rates and investment if Pakistani citizens become less future-oriented and reduce their savings at every real interest rate?
- 3.What effect does a rise in the budget deficit have on public savings?
- 4.What is the effect of a larger budget deficit on the real interest rate and the demand for loanable funds used for investment?
- 5.Which combination of government policies is most effective in promoting economic growth?
- 6.What does investment primarily refer to?
- 7.If the public reduces consumption by Rs 100 billion while the government increases its spending by Rs 100 billion, assuming all other factors remain constant, which statement is correct?
- 8.What does national saving represent in economic terms?
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