Which of the Following Might Be a Good Reason for Running

question 78

Multiple Choice

Which of the following might be a good reason for running a budget deficit?

• A) A budget deficit allows for consumption to be more evenly distributed over time, which can be helpful during times of recession.
• B) It puts the repayment burden on future taxpayers, who are better able to repay the accumulated debt.
• C) It is better than increasing taxes, because budget deficits do not have to be repaid.
• D) It allows for the expansion of entitlement programs to cover more people, thus reducing their financial burdens.
• E) There is never a good reason for running a budget deficit.