Deficit Spending (Noun)
Meaning
Spending money raised by borrowing; used by governments to stimulate their economy.
Classification
Nouns denoting acts or actions.
Examples
- The government's decision to engage in deficit spending was met with both praise and criticism from economists and politicians alike.
- Deficit spending has been a common practice among governments during times of economic recession or war.
- Critics argue that deficit spending can lead to inflation and increased national debt, while proponents claim it can stimulate economic growth.
- The country's recent economic downturn prompted the government to adopt a policy of deficit spending to boost employment and investment.
- Some economists believe that deficit spending can be an effective tool for governments to respond to economic crises, but only if done responsibly and with a clear plan for repayment.