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Which of the following budget is suitable for developing economies?
Deficit Budget
Balanced Budget
Surplus Budget
None of these
- Deficit Budget
- Governments spend more than their revenue.
- Stimulates economic growth by funding infrastructure and social programs.
- Common in developing economies to boost growth and development.
- Correct Answer.
- Balanced Budget
- Government spending equals revenue.
- Aims for economic stability, but could limit growth opportunities in developing economies.
- Surplus Budget
- Revenue exceeds government spending.
- Suitable for controlling inflation but may slow down economic growth.
- None of these
- Unlikely as an option since governments typically opt for one of the above.
By: santosh ProfileResourcesReport error
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