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Why Is a Budget Deficit Not Necessarily a Bad Thing

Question 88

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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) Future generations will always be better equipped to pay back any accumulated deficits.

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