MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 13, Problem 8SQ
To determine
The true statement of the economy.
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Students have asked these similar questions
If you voted for your committees to increase overall spending under your jurisdiction, resulting in a budget deficit for the overall federal budget, what would you expect to see happen to the national debt?
Which of the following is true?
a.
The size of the national debt currently is about the same size as it was during World War II.
b.
The national debt increases in size whenever the federal government has a surplus budget.
c.
The national debt's size decreased steadily after 1980.
d.
The current U.S. national debt is over $12.0 trillion.
Government expenditures and the assessment of taxes is an issue that goes back to the origins of the United States. Why do legislators and other politicians choose to spend so much money? What is the federal deficit and how is it different from the national debt? What has happened recently to federal deficits and the national debt, and what are some risks associated with persistently high deficits and a large national debt?
Chapter 13 Solutions
MACROECONOMICS FOR TODAY
Ch. 13.1 - Prob. 1YTECh. 13.1 - Prob. 2YTECh. 13.3 - Prob. 1YTECh. 13.3 - Prob. 2YTECh. 13 - Prob. 1SQPCh. 13 - Prob. 2SQPCh. 13 - Prob. 3SQPCh. 13 - Prob. 4SQPCh. 13 - Prob. 5SQPCh. 13 - Prob. 6SQP
Ch. 13 - Prob. 7SQPCh. 13 - Prob. 8SQPCh. 13 - Prob. 9SQPCh. 13 - Prob. 10SQPCh. 13 - Prob. 11SQPCh. 13 - Prob. 1SQCh. 13 - Prob. 2SQCh. 13 - Prob. 3SQCh. 13 - Prob. 4SQCh. 13 - Prob. 5SQCh. 13 - Prob. 6SQCh. 13 - Prob. 7SQCh. 13 - Prob. 8SQCh. 13 - Prob. 9SQCh. 13 - Prob. 10SQCh. 13 - Prob. 11SQCh. 13 - Prob. 12SQCh. 13 - Prob. 13SQCh. 13 - Prob. 14SQCh. 13 - Prob. 15SQCh. 13 - Prob. 16SQCh. 13 - Prob. 17SQCh. 13 - Prob. 18SQCh. 13 - Prob. 19SQCh. 13 - Prob. 20SQ
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Similar questions
- SS#14-C- The National Debt (Sources: "Financing the National Debt," ch. 13 p. 348-349/357-358; "Debt Ceiling," ch. 13 p. 353/359-360) 13. If the federal government has a budget deficit in one fiscal year: a. the federal government must raise taxes to pay off the deficit. b. the federal government must either cut spending or raise taxes to pay off the deficit. C. the interest rate on U.S. government bonds must increase. d. the national debt will increase by the amount of the budget deficit. 14. The national debt is the: difference between a nation's exports and imports of goods and services sum of the personal debt of all citizens in the United States C. total amount owed by the federal government to owners of government securities d. difference between the government's revenues and expenditures in one fiscal year a. b. SS#14-D-The Debate over Deficits and the Debt (Sources: "Why Worry over the National Debt?" text ch. 13 p. 353-363/362-372; "Three Questions," p. 4 of SS#14) 15. Each…arrow_forwardThe U.S. government's debt is currently about $20 trillion, which is 105% of GDP. How much debt is too much debt for our country?arrow_forwardWhat is the difference between the federal budget deficit and the national debt? a. The budget deficit is the amount by which expenditures exceed revenues in a particular year, while the national debt is the cumulative effect of all past budget deficits and surpluses. b. The budget deficit is the cumulative effect of all prior national debts. c. The national debt includes all outstanding bonds, while the budget deficit excludes bonds held by government agencies. d. This is a trick question because there is no difference between the budget deficit and the national debt.arrow_forward
- What is likely to be the immediate effect on a country's national debt if the government decides to increase public spending without raising taxes? A. The national debt will decrease. B. The national debt will increase. C. There will be no change in the national debt. D. The national debt will initially increase, but then decrease as the economy grows.arrow_forwardwhy do major events such as wars cause the national debt to increasearrow_forwardHow does the Expansionary and Contractionary Fiscal Policy affect the Inflation, GDP, Economic Growth and Employment rate in a country.arrow_forward
- If a government runs a budget deficit of $10billion dollars each year for ten years, then a surplus of $1 billion for five years, and then a balanced budget for another ten years, what is the government debt?arrow_forwardHow fiscal policy works, and its benefits.arrow_forwardWhat is the difference between your running a budget deficit and adding to your own personal debt and the federal government running a budget deficit and adding to national debt?arrow_forward
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