THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the government spends more money than it receives in taxes
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the government over taxes its population
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The government spends less money than collected in taxes
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When the government creates a budget for government spending
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Detailed explanation-1: -deficit financing, practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds.
Detailed explanation-2: -What Is Deficit Spending? 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.
Detailed explanation-3: -If the government spends more than it collects in revenue, then there is a budget deficit. If the government spends less than it collects in revenue, there is a budget surplus. In fiscal year (FY) 2022, the government spent $6.27 trillion, which was more than it collected (revenue), resulting in a deficit.
Detailed explanation-4: -For any given year, the federal budget deficit is the amount of money the federal government spends (also known as outlays) minus the amount of money it collects from taxes (also known as revenue). If the government collects more revenue than it spends in a given year, the result is a surplus rather than a deficit.