Investor Glossary-deficit spendingInvestor Glossary-deficit spendingInvestor Glossary-deficit spendingInvestor Glossary-deficit spendingInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Deficit Spending

The HTML to link to this page
 

Deficit spending represents an overload of government expenditures over government revenue, creating a shortfall or deficit that needs to be financed. Deficit spending may be reflective of excessive buying of goods and services and establishing costly government programs. Deficit spending may also be the result of transferring grants to individuals and corporations. Acute deficit spending is a potentially perilous condition. For continued deficit spending may signal an impending inflation. Restoring the economic imbalance caused by deficit spending calls for government borrowing, also known as deficit financing. Thus, deficit spending often precedes an increased issuing of bonds or currency. Such remedies for deficit spending may stimulate the economy in the short run. In the long term, however, they may become impediments, as they push up interest rates.



Rate this deficit spending definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: reverse mortgage, diluted share, stock market close, VIX, option premium, 401a, per diem, labor relations, deferred tax, inflation, current ratio, EBITDA, limit order, APR, retained earnings, balance sheet, wholly-owned subsidiary, phantom income, 1031 exchange, average price per share, class C shares, LIBOR, deferred revenue, in escrow, command economy, quality assurance, real GDP, covered put, Zero Cost Collar, minority interest, open position, Key Rate Duration, margin rate, ex-dividend, cancelled check, FICO score, stock split, liquidity ratio, 1035 exchange, dividends payable, 144a, annual return, FTSE, debt service coverage, implied volatility, risk management, irrevocable trust, required rate of return, ex-dividend date


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use