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Economics (AS & A Level) · May / June 2024 · Paper 11 · Question 21

9708Fiscal policy

Which statement about government budget surpluses and deficits is the most accurate?

  1. AA surplus implies that the balance of payments is in surplus.
  2. BA surplus implies that the government is spending too much money.
  3. CA deficit implies that the economy is in decline.
  4. DA deficit implies that the national debt is increasing.

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Correct answer: D. A deficit implies that the national debt is increasing.

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