Why Did Proponents of Sound Finance Oppose Deficit Spending

question 16

Essay

Why did proponents of sound finance oppose deficit spending?

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Definitions:

Marketable Securities

Highly liquid short-term debt investments held by companies instead of cash. Marketable securities provide nearly the liquidity of cash but earn a modest return.

Liquid Investments

Liquid investments are assets that can be quickly and easily converted into cash without significant loss of value.

Aggressive Collection

A technique used by businesses to rapidly pursue the collection of outstanding receivables to improve cash flow and reduce delinquencies.

ACP (Average Collection Period)

The average number of days it takes for a business to receive payments owed by its clients, reflecting the effectiveness of a company's credit and collection policies.