Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Question
Chapter 15, Problem 13CQ
To determine
Explain the effect of the current level of federal debt and the influence of the interest rate.
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Why might economists be quite concerned if the annual interest payments on the debt sharply increased as a percentage of GDP?
why do major events such as wars cause the national debt to increase
The 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?
Chapter 15 Solutions
Economics: Private and Public Choice (MindTap Course List)
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- 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?arrow_forwardWhy might economists be quite concerned if the annual interest payments on the U.S. public debt sharply increased AS A PERCENTAGE OF GDP?arrow_forwardIn the fiscal year 2019, the projected U.S. federal government deficit totaled $960 billion, which is 23.2 percent higher than a year earlier. Given the information in the news clip, what was the total change in U.S. national debt during the fiscal years 2018 and 2019?arrow_forward
- What is the importance of fiscal policy during times of economic recession? What is the reason why fiscal policy should be in tune with monetary policy when the economy is in the recession phase? How important is the Central Bank in the financial market?arrow_forwardHow can a government that isn't running a deficit still get itself into financial trouble?arrow_forwardDuring difficult economic times, why are uniform across-the-board budget cuts poor fiscal policy?arrow_forward
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