Ways of Financing Deficit Budget And Their Effects - SS2 Economics Past Questions and Answers - page 1
1
How can a deficit budget be financed?
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A
Borrowing
B
Increasing exports
C
Reducing taxes
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D
None of the above
2
What is the effect of a high debt burden?
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A
More resources for social and economic development projects
B
Limitations on a country's ability to invest in development projects
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C
Reduction in the inflation rate
D
None of the above
3
What is debt relief?
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A
A measure taken to reduce the burden of debt on a country
B
A method to increase the debt burden
C
A way to reduce taxes
D
None of the above
4
What is debt buyback?
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A
A way to reduce the overall debt burden
B
A method to increase the debt burden
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C
A way to increase taxes
D
None of the above
5
What is the disadvantage of debt buyback?
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A
It requires significant financial resources
B
It has no impact on the debt burden
C
It increases the debt burden
D
None of the above
6
What are the ways to finance a deficit budget?
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7
What is the effect of debt relief on a country's ability to invest in development projects?
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