contestada

An​ "excessive" budget deficit in this context is

A. a relatively large budget deficit as a percentage of GDP beyond the European​ Union's deficit and debt rules.
B. a budget deficit that has bankrupted the government.
C. a budget deficit that inevitably forces a bond rating agency to lower the rating on the​ country's debt.
D. a budget deficit that makes the economy grow by increasing income and employment.

Respuesta :

hamzatauseef

Answer:

A) A relatively large budget deficit as a percentage of GDP beyond the European​ Union's deficit and debt rules.

Explanation:

A budget deficit is when the governments have more expenditures in a budgeted year than they have the revenues in form of taxes and other incomes. A deficit is excessive if it is large in comparison to the GDP.

In the European Union the budget deficit is considered excessive if it exceeds 3% of the running years GDP.

A public debt percentage to GDP of 60% or above is considered excessive as most of the GDP then is used for debt servicing and thus impacts negatively on the financial health of the country.

Hope that helps.

Otras preguntas