When a military conflict raises government spending temporarily, it is reasonable to finance this extra spending by borrowing.

Question

Quizplus · Accepted Answer

Borrowing allows the government to pay for the increased spending without immediately raising taxes or cutting spending in other areas. As long as the borrowing is done responsibly and the government can eventually pay back the debt, it is a reasonable way to finance temporary increases in spending during military conflicts.

When a Military Conflict Raises Government Spending Temporarily, It Is