tutor2u | Fiscal Policy - Government Borrowing

Study Notes

Fiscal Policy - Government Borrowing

Level:
AS, A Level
Board:
AQA, Edexcel, OCR, IB

Last updated 4 Jul 2018

When a government's tax revenues are insufficient to pay for a given level of state spending then a nation must borrow to make up the difference, this is a budget deficit. Governments often find that they have to borrow to finance their spending

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