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JAMB Economics 2023 Objective — Question 5

Question 5 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2023 Objective paper, with the correct answer and a full explanation.

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Deficit budget of the government will lead to

  • A. (A) Unemployment
  • B. (B) inflationCorrect
  • C. (C) deflation deficit balance of payment
  • D. (D) None of the options

Explanation

A deficit budget means government spending exceeds its revenue, putting excess money in the hands of the people and leading to inflation.

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