Deficit spending 4 investment therefore even though

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DEFICIT SPENDING 4 investment. Therefore, even though there is an increased government expenditure (Tucker, 2008), there is a fall in the private expenditure hence lowering the boost on economic growth. Deficit spending therefore can boost the economy of a country at the right time. When the country is at recession, it would be appropriate to allow for a large budget deficit (Ulan, 2013) which would stimulate private investors. It is therefore important to first consider the state of the economy of a nation before deciding where or not to allow deficit spending. For instance, when the economic growth of a nation is sustained, it is appropriate to try and reduce the budget deficit rather than increasing it. Consequently, in order to increase productivity in long-term, the government can budget to invest in the infrastructure of the country.
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DEFICIT SPENDING 5 Reference McKinney, J. B. (2017). Budgeting for Sustainability: An Approach for American Policy- Making . McFarland. Posner, R. A. (2009). A failure of capitalism: The crisis of'08 and the descent into depression . Harvard University Press. Tucker, I. B. (2008). Survey of Economics. University of North Carolina Charlotte. Von Furstenberg, G. M., & Ulan, M. K. (2013). Learning from the World’s Best Central Bankers: Principles and Policies for Subduing Inflation . Springer Science & Business Media.
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