ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
How can a budget deficit be reduced?
Group of answer choices
Decreasing government spending and/or increasing taxes
Lowering taxes and raising government spending
By only increasing taxes
Increasing government spending and/or decreasing taxes
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- Explain how a budget deficit arises and what actions governments must take in this circumstance. How does the budget deficit relate to the national debt?arrow_forwardCongress recently passed and President Biden signed the American Rescue Plan (ARP), which will add $1.9 trillion to the federal deficit over the next ten years. Even before this new spending, federal debt held by the public was slated to reach 107% of GDP by 2031, the highest in history. What do high deficits mean going forward?arrow_forwardA government's debt is reduced when it Group of answer choices runs a surplus. runs a deficit. balances is budget. sells more bonds.arrow_forward
- What budget changes would have to occur in order to lower an annual deficit? Annual expenditures would have to rise. Annual expenditures would have to decline and annual tax collections would have to rise. Annual tax collections would have to fall. Annual expenditures would have to rise and annual tax collections would have to fall.arrow_forwardHow and why would the line-item veto influence budget reforms and reduce deficits?arrow_forwardWhat was the budget agenda for President George W. Bush's administration?arrow_forward
- What would happen to the budget deficit if the:a) GDP growth rate jumped from 1 percent to 3 percent?b) inflation increased by 2 percentage points?arrow_forward11arrow_forwardTo maintain a balanced budget during a recession, what should the government do? Group of answer choices Decrease taxes, increase transfer payments, and/or decrease government spending Increase taxes, increase spending, and/or increase transfer payments Increase taxes, decrease transfer payments, and/or decrease government spending. Decrease taxes, decrease government spending, and/or decrease transfer paymentsarrow_forward
- What is the concept of a budget deficit? A. Government spending exceeds government revenue B. Government revenue exceeds government spending C. Government spending is equal to government revenue D. Government debt is reduced to zeroarrow_forwardName and describe two different ways the government takes in money (revenue).arrow_forwardWhy do governments typically issue general long-term debt? What types of services might be limited if debt was no longer a financing option?arrow_forward
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