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    Question

    A revenue deficit occurs

    when—
    A Capital expenditure exceeds capital receipts Correct Answer Incorrect Answer
    B Revenue expenditure exceeds revenue receipts Correct Answer Incorrect Answer
    C Total expenditure exceeds total receipts Correct Answer Incorrect Answer
    D Borrowings exceed tax collections Correct Answer Incorrect Answer
    E Government consumption decreases Correct Answer Incorrect Answer

    Solution

    Revenue deficit indicates the government is dissaving—using current revenues to fund non-asset-creating expenditures.

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