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Ne4ueva [31]
3 years ago
8

What does deficit spending require a government to do

History
1 answer:
adell [148]3 years ago
7 0

Answer:

Explanation: Before we tackle this question we must look at a bit of background information. There are two economic schools of thought

-Keynesian

-Supplyside

- In keynesian economics, the government believes that in order to increase the supply, Congress must invest in the society, therefore increasing the deficit.

- <em>In supply side economics, the govt believes the only way to stimulate the economy is through de-regulation, so the govt would actually generate less revenue</em>

<em>- During times of depression keynesian economics are often seemed to be most effective.</em>

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