Ask Question
20 April, 04:43

What happens when the federal government starts a policy of deficit spending?

+5
Answers (2)
  1. 20 April, 07:03
    0
    The federal government starts a policy of deficit spending when the government spending exceeds income; it spends more money than it is taking in through tax revenue and other means, such as bonds. It occurs with a plan to repay the debt, plus interest charges over time. It is a standard technique used by the federal government, along with most governments around the world, which operate on budgets based on economic science. Deficit spending is one of the numerous tools used by the federal government to manage the world’s largest economy (the largest in history) by use of such credit and financial instruments as interest rates, Bonds, Treasury bills, currency valuation and tariffs to influence a modern national economy.
  2. 20 April, 07:58
    0
    When the federal government starts a policy of deficit spending, then it is spending more money than it is taking in through tax revenue and other means, such as bonds.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “What happens when the federal government starts a policy of deficit spending? ...” in 📘 History if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers