Introductory Macroeconomics

Book: Introductory Macroeconomics

Chapter: 5. The Government: Budget And The Economy

Subject: Social Science - Class 12th

Q. No. 11 of Exercises

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Explain the relation between government deficit and government debt.

In order to meet the government deficit, the government relies upon borrowings, which creates government debt. So the concept of deficit and debt are closely related. Deficit is a flow which adds to the stock of debt.


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