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Investments glossary

Deficit Spending


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Quotes of the day:

All that is gold does not glitter not all those that wander are lost.

— J. R. R. Tolkien

In the simplest terms, deficit spending is when a government’s expenditures exceed its revenues during a fiscal period, causing it to run a budget deficit. The phrase deficit spending often implies a Keynesian approach to economic stimulus, in which the government takes on debt while using its spending power to create demand and stimulate the economy.


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