The Government Debt Limits in USA is a hot topic, currently being debated in Congress. Should the government be increasing the government debt limit? And how would such a decision impact the lives of the people and the country as a whole?

Q: Would you predict that government expenditures would be higher or lower if taxes (or user charges)…

A: The government expenditure is made out of the government revenue an when the increase in government…

Q: Describe three ways in which government spending can be financed

A: Government spending on goods and services is one of the major components of aggregate demand.…

Q: How budget deficits and national debt are defined?

A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only first…

Q: What is the relationship between a budget deficit and the national debt? A budget deficit adds to…

A: A budget deficit is the excess of government spending over government taxes.  i.e., Budget deficit =…

Q: Which of the following is a way to finance a fiscal deficit? Select one: a. Indirect taxes. b.…

A: The fiscal deficit occurs when the government's expenditure is greater than the government's…

Q: What are the consequences of a high Debt to GDP ratio for the economy?

A: The debt-to-GDP ratio is the ratio of a country's government debt and its gross domestic product…

Q: Why is it important to consider the debt-to-GDP ratio rather than just the absolute amount of the…

A: The measure used to compare a nation's public debt to its gross domestic product is called the…

Q: In what ways do future generations benefit from this generation’s deficit spending?  Cite three…

A: Public deficit: It refers to the situation in which government expenditure exceeds its revenue…

Q: how to reduce the debt gdp ratio for macro

A: The debt-to-GDP proportion is the measurement contrasting a country's public debt with its (GDP).

Q: If tax revenues are lesser government expenditures in a year, the budget deficit would be negative.

A: Tax Revenue: Revenue that is generated against the tax is termed as tax revenue. Tax is an important…

Q: In 1998, the government reduced its debt by $40 billion and it spent $420 billion. How much tax…

A: The tax revenue received by the government includes the debt reduced by the  government and the…

Q: Give three yes and three no arguments. Why Are tax cuts good for America?

A: Any tax cut would decrease the revenue for government and increase the income of people with tax…

Q: Which of the following is a TRUE statement about arguments for and against requiring a balanced…

A: When talking about balanced budget, it is the situation when government is spending exactly the same…

Q: In 2050, the government has collected $10,227 billion in revenues from taxes but has spent $10,584…

A: A budget deficit occurs when government spending is greater than government tax collection i.e.,…

Q: Why might economists be quite concerned if the annual interest payments on the U.S. public debt…

A: If the annual interest payments on debt increased sharply, government spending on debt will increase…

Q: Suppose that in 2016 the federal government spent $680 billion and collected $480 billion in taxes.…

A: The government budget gives the summary of the expenditure and revenues of the government. The…

Q: Suppose that in 2016 the federal government spent $730 billion and collected $480 billion in taxes…

A:

Q: Why most central banks no longer buy public debt in the primary market?

A: Primary market is the place where in securities are being created. In this market the firms sell new…

Q: What two factors could reduce the net economic burden that might be shifted to future generations…

A: find below the answer.

Q: Which of the following will cause a reduction in the debt-to-GDP ratio? A) an increase in the real…

A: In an economy, the debt-to-GDP ratio refers to the measurement of an economy's total debt or…

Q: What is public debt? Why public debt a burden on future generation?

A: Public debt refers to the entire amount borrowed by the government to meet its development budget,…

Q: Which of the following is true?   a. The size of the national debt currently is about the same size…

A: a. The debt to ratio hits its all-time record of 113% by the end of the war ended. In 1946, the…

Q: What must be true about the level of government expenditures and tax revenues for the federal…

A: Government expenditure is the amount spent by the government in order to provide goods and services…

Q: Which of these is MOST LIKELY to occur after the government increases taxes?   A.) Consumer…

A: When taxes are increased, consumers' spending reduces as disposable income falls. Consumers are left…

Q: In 2016, the policy makers of the of Eastlandia projected the debt-GDP ratio and the ratio of the…

A: Given: Real GDP is currently = $1,000 billion per year Real GDP is expected to grow at = 3% per year…

Q: What is considered "too much" debt or "too large" a deficit?  Are you able to provide any guidelines…

A:

Q: Discuss the relationship between revenue deficit and fiscal deficit

A: We know that the budgetary deficit is of three types which are revenue deficit, fiscal deficit and…

Q: Complete the following sentence. As it relates to fiscal policy, a budget deficit exists when:Choose…

A: A budget deficit occurs when a government spends more in a given year than it collects in revenues,…

Q: Does it matter that increased government debt/GDP ratios place a higher tax burden on future…

A: It is the ratio of a country's public debt to its gross domestic product that is used to measure its…

Q: In addition to issuing bonds, explain any two major ways the government can raise revenue to finance…

A: In n economy, financing government debt is necessary to reduce the burden of future generation and…

Q: Why might economists be quite concerned if the annual interest payments on the debt sharply…

A: The standard measure of value-added produced during a certain time by manufacturing goods and…

Q: If a government runs a budget deficit of $10billion dollars each year for ten years, then a surplus…

A: The deficit accumulated after 10 years of budget deficit will be: budget deficit=10×10=$100 billion…

Q: Many communities today are concerned with their local government's ability to appropriately manage…

A: Fiscal policy is the use of government spending and tax assessments to impact the economy.…

Q: The size of the national debt increases when the federal government runs a deficit. True or False…

A: The statement is TRUE

Q: In case the government is experiencing deficit in its budget, it resorts to borrowing to close the…

A: The budget deficit is an excess of government (G) expenditure over G revenues. To close the deficit,…