Deficit spending" refers to a situation where the government: A. Spends borrowed funds B. Collects more tax revenues than it spends C. Does not need to borrow funds D. Is spending less than the year before
Deficit spending" refers to a situation where the government: A. Spends borrowed funds B. Collects more tax revenues than it spends C. Does not need to borrow funds D. Is spending less than the year before
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter30: Government Budgets And Fiscal Policy
Section: Chapter Questions
Problem 24RQ: Have spending and taxes by state and local governments In the United States had a generally upward...
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Question
"Deficit spending" refers to a situation where the government:
A. Spends borrowed funds
B. Collects more tax revenues than it spends
C. Does not need to borrow funds
D. Is spending less than the year before
Expert Solution
Step 1
When tax revenue collected by the government is equal to government spending the situation is known as balanced budget.
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