What is deficit spending?


What is deficit spending?

Budgets and Deficits

No matter how large a company, organization, or government is, they have to have a budget, a plan for how much money they have and how they will spend it. A deficit occurs when the amount of money that they have is less than the amount they need.

Answer and Explanation:

Become a Study.com member to unlock this answer! Create your account

View this answer

Deficit spending is when an organization purposefully spends more money than their budget allows. This is particularly common among governments, and...

See full answer below.

Learn more about this topic:

Deficit Spending: Definition & History
Deficit Spending: Definition & History


Chapter 19 / Lesson 11

Learn about government deficit spending in US history. Understand the causes of deficit spending and how deficit spending works. Identify arguments for and against deficit spending and deficit spending examples.

Related to this Question

Explore our homework questions and answers library