what does deficit spending require a government to do? lay off workers cut taxes take on debt hire more workers

June 27, 2026 • 1 min read

Deficit spending requires a government to take on debt (borrow money).

When a government practices deficit spending, it spends more money than it collects in taxes and other revenues during a given period.

To cover this gap, it must borrow—usually by issuing bonds or other securities—which increases the government’s total debt.

So, among the options:

The required action for deficit spending is to take on debt.

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