Question

What does deficit spending require a government to do

Answer 1

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.

- 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

- During times of depression keynesian economics are often seemed to be most effective.