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WAEC Economics 2003 Question 46

Question 46

Public Finance

Budget deficit can be financed by

  1. A.reducing the level of taxation
  2. B.printing more money
  3. C.lending to financial institutions
  4. D.employing more workers
Show the answer and explanation

Answer: B (printing more money)

Explanation

Government can cover a deficit by creating new money (or borrowing); the other options widen it.