GCE Economics 2025 Objective — Question 13
Question 13 of 60 from the General Certificate of Education (GCE) Economics 2025 Objective paper, with the correct answer and a full explanation.
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Which of the following is a reason for balance of payment deficit?
- A. Excessive government expenditureCorrect
- B. Existence of import dependent industries
- C. Poor economic infrastructure
Explanation
When government spending exceeds revenue, it can lead to increased imports and reduced exports, causing balance of payments deficits.
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