To reduce distortions in the economy,it is probably better to finance temporary large government spending with
A)deficits.
B)taxes.
C)exports.
D)all of the above
E) none of the above

Question

Quizplus · Accepted Answer

Financing temporary large government spending with deficits allows the government to spread the cost over time, avoiding sudden increases in taxes that could distort economic behavior and reduce economic efficiency. This approach can help smooth out the economic cycle without causing immediate distortions in consumption and investment.

To Reduce Distortions in the Economy,it Is Probably Better to Finance