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What is government borrowing to cover a deficit called?

AFiscal surplus
BForeign exchange reserves
CPublic debt
DTrade surplus

Explanation

– It includes both domestic and external borrowing.
– Managing public debt is a recurring theme in Pakistan’s fiscal policy.
– High debt levels can affect a country’s credit standing.

Exam Relevance
  • Topic: Economy
  • Subtopic: Fiscal Policy
Submitted by: mcqstutor Team More Pakistan Studies MCQs →

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