high government expenditures can lead to a bigger\n○ revenue.\n○ stimulus.\n○ deficit.\n○ surplus.
high government expenditures can lead to a bigger\n○ revenue.\n○ stimulus.\n○ deficit.\n○ surplus.
Answer
Brief Explanations:
To solve this, we analyze each option:
- Revenue: Government expenditure and revenue are related but high expenditure doesn't directly lead to bigger revenue. Revenue is more about income (taxes, etc.).
- Stimulus: While government spending can be a stimulus, the question is about what high expenditure leads to in terms of a fiscal outcome. Stimulus is an effect on the economy, not a direct fiscal measure like deficit/surplus.
- Deficit: Government deficit is when spending (expenditure) exceeds revenue. So if government expenditures are high (assuming revenue doesn't increase proportionally or more), it can lead to a bigger deficit (since deficit = expenditure - revenue, higher expenditure with same or lower revenue increases deficit).
- Surplus: Surplus is when revenue exceeds expenditure. High expenditure would move away from surplus, not towards a bigger surplus.
Answer:
C. deficit.