Question

As a means of funding government programs, deficit spending

A) increases the national debt.
B) reduces the federal budget and national debt.
C) was eliminated by a federal balanced budget amendment.
D) can be carried out by the federal government and states.

Answer 1

The correct answer is A) Increases national debt.

Deficit spending refers to a time when the government spends more money than they have available in the budget. This concept has been popular in American society for the last few decades. This is one of the big reasons why the US government has a significant debt.