deficit financing


Definitions (2)

1.Macroeconomics: Planned expenditure by a government to put more money into the economy than it takes out by taxation, with the expectation that increased business activity will bring enough additional revenue to cover the shortfall. Also called deficit spending.
2.Microeconomics: Debt financing to cover excess of expenditure over income.

Use deficit financing in a sentence

  • Sometimes when their is a recession the government will turn to deficit financing to try and get the economy going.

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  • We put a lot of energy into deficit financing that that made everyone really upset because they did not have any say in what we did.

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  • Sometimes the government will decide that the economy needs a boost and use deficit financing to try and accomplish it.

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