Government spending on defense decreases the national deficit.
Level of Learning 2: Understanding of concepts and principles

Question

Quizplus · Accepted Answer

Government spending on defense is a government expenditure, which adds to the national deficit if it is not accompanied by adequate revenue sources or other means of reducing the deficit. Therefore, decreasing defense spending does not increase the national deficit, but it may free up resources that can be used to reduce the deficit in other ways.

Government Spending on Defense Decreases the National Deficit