Question

(30 points asap) Which possible consequence can a budget deficit rather than a budget surplus have for a nation?

Answer 1

Answer:

Option B          

Explanation:

In simple words, When expenditures exceed income and denote a nation's monetary wellbeing, a budget problem in form of deficit happens. The administration uses the word fiscal deficit broadly when relating to expenses instead of companies or people. Deficits incurred from the government deficit.

Inflation is amongst the principal hazards of such a budget deficit, which would be the significant rise of the market prices. A budget shortfall throughout the United States will force the reserve bank to pump more capital into the market, which is driving inflation.