Which of the Following Reasons for Maintaining Federal Budget Deficits

Multiple Choice

Which of the following reasons for maintaining federal budget deficits is inaccurate?

A) Deficits boost domestic saving, which in the long run could promote economic growth.
B) Deficits help reduce the size and duration of recessions through automatic stabilizers.
C) Deficits are used to finance capital projects.
D) Public spending through deficit financing wins support from voters.
E) A federal budget deficit stimulates aggregate demand.