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when are large federal deficits desirable?

when are large federal deficits desirable?

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Large deficits are desirable in case of economic emergencies. For example, during a recession, a higher government spending can mitigate the negative effects of the recession by stimulating demand and increasing investment. This can increase income and lower unemployment rate. Also, a higher deficit may be desirable when the government spends on infrastructure to increase capital stock and production capability. Lastly, a higher deficit may be necessitated during wars.

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