Question

A government deficit occurs when government expenditures are greater than the revenue collected in a given year. A government deficit can be defended against a balanced budget policy because:

Answer 1

C

Step-by-step explanation:

A.private investment decreasesB.it has no immediate effect on the economy.C.the government can stimulate the economy when income is unusually low.D.the public does not voice concern about the national budget

A deficit occurs when government spending exceeds income either because it spends more than it earns or taxes are too low

A balanced budget is when government spending equals income

benefits of a budget deficit

1. it allows the government to carry out stabilization policies
2. it allows the government spread discretionary tax overtime