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What does deficit spending require a government to do?
O lay off workers
O cut taxes
O take on debt

User Kilizo
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1 Answer

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Final answer:

Deficit spending requires a government to take on debt in order to cover its budget deficit.


Step-by-step explanation:

Deficit spending requires a government to take on debt. It is a fiscal policy tool where a government spends more money than it collects in revenue, resulting in a budget deficit. To cover the deficit, the government borrows money by issuing Treasury bonds or through other means. This allows the government to finance its spending obligations.


Learn more about Deficit spending and its requirement

User Thordarson
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