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When does deficit spending occur?

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Anonymous

14y ago
Updated: 8/17/2019

Anytime you spend more than you are making or collecting, you are in deficit.

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Wiki User

14y ago

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What is spending deficit?

Deficit spending is the opposite of budget surplus. It means spending more money than you have - going into debt.


What is the principal argument for deficit spending?

Principal argument for deficit spending is the central point of controversy in economics.


Did roosevelt use deficit spending during world war 2?

Roosevelt did use the deficit spending in World War 2. This was to help with the spending.


Spending more money than is taken in?

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President Obama faces strong political pressure to curb deficit spending in the United States.


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A deficit is a shortage. Similar to anaccount that is overdrawn. in other words you are spending money that does in reality not exist yet. Deficit spending is spending money you don't own in other words borrowed money. A deficit, or deficit financing, is what happens when the government spends more money than it takes in from taxes. Deficit spending can be accomplished by borrowing or simply by printing more money. Deficit is a lack or shortage... When governments say that there is a deficit, they mean that they are unable to come up with the required amount of money needed to run the country.


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Why are budget deficits and trade deficits sometimes called the twin deficits?

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