Deficit spending is a way of _____
A) billing future taxpayers for current spending.
B) billing future taxpayers for future spending.
C) billing current taxpayers for current spending.
D) billing current taxpayers for future spending.
E) suddenly increasing the investment flows in the economy.

Question

Quizplus · Accepted Answer

Deficit spending involves the government spending more money than it is bringing in through taxes, which results in a budget deficit. This deficit is typically financed through borrowing, which means that future taxpayers will have to pay off the resulting debt with interest. Therefore, deficit spending is essentially billing future taxpayers for current spending.

Deficit Spending Is a Way of _____