When Has Deficit Financing Been Justified

question 156

Multiple Choice

When has deficit financing been justified?

• A) to decrease taxes
• B) to increase in defense spending
• C) to increase in the use of automatic stabilizers
• D) to increase the economy's productivity
• E) to increase in transfer payments

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Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.

Offer Price

The price at which a seller is willing to sell a security or commodity.

Government Bonds

Are debt securities issued by a government to support its spending, typically considered a low-risk investment.

Interest Rate

The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.