Why Is a Budget Deficit Not Necessarily a Bad Thing

question 38

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) Because future generations will be better equipped to pay back any accumulated deficits.

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