Reducing the government's budget deficit will certainly increase economic growth.

Question

Quizplus · Accepted Answer

This statement is a common misconception. While reducing the government's budget deficit may help to stabilize the economy in the long run, it may also lead to short-term decreases in economic growth due to decreases in government spending and potentially higher taxes. Additionally, the specific policies used to reduce the deficit can have both positive and negative impacts on economic growth. It is important to carefully consider the potential consequences of deficit reduction efforts.

Reducing the Government's Budget Deficit Will Certainly Increase Economic Growth