Deficit spending occurs when
A)Consumers spend less than their income.
B)Investment spending declines.
C)Net export spending alters macroeconomic outcomes.
D)Government spending becomes greater than the tax revenues collected.

Question

Quizplus · Accepted Answer

Deficit spending occurs when government spending becomes greater than the tax revenues collected. This results in the government having to borrow money to finance its expenditures, typically leading to an increase in the national debt.

Deficit Spending Occurs When