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Explain the relation between four deficit …

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Explain the relation between four deficit and govt debt.

    • Posted by Maimoona Zaidi 6 years, 10 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Gaurav Seth 6 years, 10 months ago

    <th>BASIS FOR COMPARISON</th> <th>DEFICIT</th> <th>DEBT</th>
    Meaning When the government spending is higher than the government revenue, this is known as deficit. A sum of money owed by the central government of the country to other lenders or countries is known as debt.
    What is it? Cause Effect
    Applies to Single year All sums owed
    Represents Country's annual borrowing requirement. Debt built over the past years.
    Constant Yes, it can be constant if the government spent money in a planned manner. No, it cannot be constant.
    Types Structural and Cyclical Internal and External

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