Which of the following statements about government spending are correct? (A) Capital expenditure is used for creating assets like infrastructure, while revenue expenditure is for day-to-day operations. (B) An increase in government spending generally leads to an increase in national income in the short run. (C) Public sector spending is always aimed at improving productivity in the economy. (D) In the case of a deficit budget, the government borrows to meet its expenses.

1
1. (A), (B), (D)
2
2. (A), (C), (D)
3
3. (B), (C), (D)
4
4. (A), (B)

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