government budget surplus affect the economy? How does a government budget deficit affect the economy? How would (or should) your company react differently to a government budget surplus vs. A deficit?

A government deficit means that a government is borrowing more money from foreign and domestic sources than the sum it is accumulating by taxation and revenue. The effect of this borrowing often drives down the value of the government's currency abroad. One of the values of deficit spending from a business company's perspective is that it is easier to sell American made products to other nations.

Thus, at times, businesses may look favorably upon deficit-inducing levels of government spending. When the economy has high unemployment, an increase in government purchases can create a market for business output, creating income and encouraging increases in consumer spending. This creates further increases in the demand for business output. Cutting personal taxes can...
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