Why Is a Budget Deficit Not Necessarily a Bad Thing

question 31

Multiple Choice

Why is a budget deficit not necessarily a bad thing?

• A) Governments should always spend more than they collect in revenue to encourage economic growth.
• B) Saving money is not something a government should do.
• C) As long as the government is paying for things it needs,it is appropriate to spend more than is collected in tax revenue.
• D) Deficits may allow for tax rate stability during recessions.
• E) Future generations will always be better equipped to pay back any accumulated deficits.

---

Definitions:

Inherently Dangerous

Activities or conditions that naturally involve a risk of injury or harm without needing negligence to be proved for liability.

Express Assumption

A clearly stated acceptance of risk or conditions as part of an agreement or contract.

Written Contract

A legally binding agreement between two or more parties that is expressed in written form.

Modified Comparative Negligence

A legal doctrine under tort law that allows for the plaintiff to recover damages even if they are partially at fault, but only if their responsibility is below a certain percentage.