How do investors benefit from a deficit budget?

Question

Sterling Sanchez

Social Studies

21 June, 18:33

How do investors benefit from a deficit budget?

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Carson Waters · Answer 1

A deficit budget is present when the government borrows to the private sector. This money out of the central bank of the government gives the investors an opportunity to invest, buy properties, get into businesses, etc. A deficit budget may be beneficial depending on the exchange rate system, the motives for the borrowing and the interest rates.