Some economists argue that federal government capital projects,which offer benefits over a number of years,should be financed over a number of years and therefore involve deficit finance.

Question

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Capital projects often involve large sums of money that may not be available in a single fiscal year. Financing them over a number of years through deficit spending allows the government to spread the cost of the project over the period during which the benefits will be realized. This approach is often considered prudent and fiscally responsible.

Some Economists Argue That Federal Government Capital Projects,which Offer Benefits