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.

---

Definitions:

Smoking-Related Cancers

Cancers that are directly linked to tobacco use, including lung, throat, mouth, and bladder cancer.

Motor Coordination

The ability to execute smooth, accurate, and controlled motor responses, often involving the synchronization of movement and sensory feedback.

Addiction

Addiction is a chronic disorder characterized by compulsive engagement in rewarding stimuli, despite adverse consequences, often leading to physical and psychological dependence.

Depressant

A substance that reduces arousal or stimulation in various areas of the brain, often used to treat anxiety and sleep disorders.