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What is deficit financing?

Updated: 9/23/2022
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8y ago

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Macroeconomics: Planned expenditure by a government to put more money into the economy than it takes out by taxation, with the expectation that increased business activity will bring enough additional revenue to cover the shortfall. Also called deficit spending.

Microeconomics: Debt financing to cover excess of expenditure over income.

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Q: What is deficit financing?
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Related questions

What is the concept of deficit financing?

Concept of deficit


Deficit Financing is good How?

i love this site


What id deficit financing?

Deficit financing is a state in which the government spends more money than it receives. This results to borrowing of funds to cover the difference.


How will some country manage their issues?

deficit financing


Is deficit financing of government programs a good idea?

no


How does federal deficit financing influence monetary and credit conditions?

1. Federal Government deficit financing may have a very great influence on monetary and credit conditions.


How does the Federal Deficit Financing influence monetary and credit conditions?

1. Federal Government deficit financing may have a very great influence on monetary and credit conditions.


Financing the war with borrowed money was a example of?

Deficit Spending


How does deficit financing add to public debt?

deficit financing adds to public debt because it is regularly spending more than it takes in each year-and then borrows to make up the difference.


What enables the government to make up a budget deficit?

Deficit financing is defined as financing the budgetary deficit through public loans and creation of new money. Deficit financing in India means the expenditure which in excess of current revenue and public borrowing. The government may cover the deficit in the following ways.By running down its accumulated cash reserve from RBI.Issue of new currency by government it self.Borrowing from reserve bank of India and RBI gives the loans by printing more currency notes.


How does deficit financing add to the public debt?

deficit financing adds to public debt because it is regularly spending more than it takes in each year-and then borrows to make up the difference.


What does the Federal Govt often rely on to pay for wars or programs?

Deficit financing.