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economics 102 - Government spending, deficits, and inflation

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Lt Scrounge

Lt Scrounge

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While some government spending is necessary. When governments spend more money that they have coming in, deficits result. While small deficits are undesirable, they are manageable through controlled spending and increasing the size of the tax base (not rates which causes revenues to fall and deficits to increase.) and thereby increasing revenues.

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