What are the the Costs and Benefits of Deficits?

What should government do with its spending and taxes during a recession? Why?

What are the potential issues with fiscal policy?

Are we passing the national debt burden onto our children? Is this a problem?

Who Handles Fiscal Policy?

Analyze the challenges that the US economy is facing to reduce the deficit

The effects of a budget deficit can be offset by: a. External financing b. Crowding out c. A structural deficit d. All of the above Crowding out occurs when: a. Business investment increases due to lower interest rates b. There is an increase in business borrowing c. An increase in federal borrowing reduces private borrowing d. There is an increase in the nations’ savings If the government wanted to reduce inflation in the economy, it could: a. Increase income transfers b. Increase government spending c. Cut taxes d. Increase taxes

The savings rate in a country is 25%. The government wants to expand GDP by $300 Billion. How much must they increase Government spending to reach that goal?

What are the steps of the revenue cycle? Which step do you believe is the most important and why?

Mention a type of fiscal policy or monetary policy that is currently being implemented. Then discuss how government spending, taxes, or interest rates are being changed.