Deficit-Financing

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August 25, 2024 4 min read Definitions
Deficit Financing: Borrowing by a Government Agency to Make Up for a Revenue Shortfall
Economics Finance Deficit-Financing Government Borrowing Economic Stimulation Interest Rates Fiscal Policy
Deficit financing involves borrowing by a government agency to cover a revenue shortfall. It can stimulate the economy temporarily but may lead to higher interest rates and other economic implications.
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