How do investors benefit from a deficit budget?

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Social Studies

Karla Berry

7 November, 10:54

How do investors benefit from a deficit budget?

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Benjamin Sawyer · 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.