ECO 372 Week 4 DQ 2

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- What are the positive and negative aspects of budget deficits and surpluses? What policy is best for today’s economy? Explain your answer.

Response
Budget surpluses help to increase national savings, this is directly related to the government saving money, and people being able to save money, also it helps businesses to save money. When the government collects more money than what it is spending than it has an outstanding debt. By increasing those saving it creates more money for them to lend, stimulates investments, while also reducing interest rates.
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