1. The method used by a government to finance its budget deficit, that is, to cover the difference between its tax receipts and its expenditures. The main choices are to issue bonds or to print money.
2. The assumption that a change in government spending or taxes will be financed by a change in the government budget deficit, rather than by an accommodating additional change in spending or taxes to keep the budget balanced. Example: a "deficit-financed increase in government purchases."
Related information about deficit financing:
- deficit financing (economics) -- Britannica Online Encyclopedia
Practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds. Although ...
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(Economics, Accounting & Finance / Banking & Finance) government spending in excess of revenues so that a budget deficit is incurred, which is financed by ...
- deficit financing: Definition from Answers.com
deficit financing In government, the practice of spending more money than is received as revenue, the difference being made up by borrowing or minting.
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Deficit financing is the practice of a network or channel paying the studio that creates a show a license fee in exchange for the right to air the show. A major ...
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Nov 8, 2012 ... Deficit financing is an approach to money management that involves spending more money than is collected during the same time. The...
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Definition of deficit financing: Macroeconomics: Planned expenditure by a government to put more money into the economy than it takes out by taxation, with the ...
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(especially of a government) expenditures in excess of public revenues, made possible typically by borrowing. Relevant Questions. What Is the Purpose Defi.
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Jun 1, 2012 ... Deficit financing can be done in three ways: by raising taxes, borrowing money or printing money. Each carries risks and pitfalls, but arguably ...