What are the positive and negative aspects of budget deficits and surpluses? Which policy is best for today's economy?© BrainMass Inc. brainmass.com March 5, 2021, 12:26 am ad1c9bdddf
1. The positive effect of budget deficit is that it can stimulate the economy during recession and increase demand in the economy. The negative effect of budget deficit is that government has to borrow at higher rates and this can crowd out private investment; there will be future debt ...
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