Economics For Today
9th Edition
ISBN: 9781305507074
Author: Tucker, Irvin B.
Publisher: Cengage Learning,
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Question
Chapter 23, Problem 3SQ
To determine
How the budget and national debt are related.
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Students have asked these similar questions
Differentiate between the following terms:a. a budget deficit. b. the government debt. c. a budget surplus d. a balanced budget.
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.
When governments run budget deficits, how do they make up the differences between tax revenue and spending?
Chapter 23 Solutions
Economics For Today
Ch. 23.3 - Prob. 1.1YTECh. 23.3 - Prob. 1.2YTECh. 23.3 - Prob. 2.1YTECh. 23.3 - Prob. 2.2YTECh. 23 - Prob. 1SQPCh. 23 - Prob. 2SQPCh. 23 - Prob. 3SQPCh. 23 - Prob. 4SQPCh. 23 - Prob. 5SQPCh. 23 - Prob. 6SQP
Ch. 23 - Prob. 7SQPCh. 23 - Prob. 8SQPCh. 23 - Prob. 9SQPCh. 23 - Prob. 10SQPCh. 23 - Prob. 11SQPCh. 23 - Prob. 1SQCh. 23 - Prob. 2SQCh. 23 - Prob. 3SQCh. 23 - Prob. 4SQCh. 23 - Prob. 5SQCh. 23 - Prob. 6SQCh. 23 - Prob. 7SQCh. 23 - Prob. 8SQCh. 23 - Prob. 9SQCh. 23 - Prob. 10SQCh. 23 - Prob. 11SQCh. 23 - Prob. 12SQCh. 23 - Prob. 13SQCh. 23 - Prob. 14SQCh. 23 - Prob. 15SQCh. 23 - Prob. 16SQCh. 23 - Prob. 17SQCh. 23 - Prob. 18SQCh. 23 - Prob. 19SQCh. 23 - Prob. 20SQ
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Similar questions
- 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.arrow_forwardWhen the total revenues in the federal government are greater than the total expenses in a given year, the budget: A. is balanced. B. has a profit. C. has a deficit. D. has a surplus.arrow_forwardThe Borrowings of the Government and the fiscal deficit are $30,000 Is this situation true or false?arrow_forward
- How does an increase in government spending without a change in taxes typically affect the national debt? A. The national debt decreases because government spending stimulates the economy. B. The national debt remains unchanged because the increase in spending is offset by economic growth. C. The national debt increases because government spending exceeds tax revenues. D. The national debt fluctuates unpredictably due to the complex nature of economic variables.arrow_forwarda) How can the government use fiscal policy during a downturn to stimulate the economy?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
- Complete the following sentence. As it relates to fiscal policy, a budget deficit exists when:Choose one answer.a. the government receipts are greater than its expenditures. b. the government expenditures are greater than its receipts. c. the government expenditures are equal to its receipts. d. the national debt is less than the yearly revenue.arrow_forwardWhat is the primary goal of fiscal policy? A. Maintaining price stability B. Achieving full employment C. Promoting economic growth D. Regulating financial marketsarrow_forwardThe stock of government debt will continue to rise unless the government. a. Increases its taxes. b. Runs a budget surplus. c. Runs a budget deficit. d. Decreases the size of its transfers. e. Decreases its expenditures.arrow_forward
- Explain the implications of the national debt's projected trend on the economy. A. The increasing national debt could force interest rates to rise. The cost of borrowing increases for governments, businesses, and households from the decreased value of the dollar. B. The increasing national debt could force lower interest rates and lower inflation because there is less demand for investors buying the debt. This could result in deflation. C. The lower national debt will help keep interest rates and inflation low. The cost of borrowing decreases for governments, businesses, and households, helping to spur the economy. D. The national debt is neither expanding nor contracting. The government can maintain low interest rates and inflation with a balanced budget, sustaining strong economic growth.arrow_forwardWhat 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_forwardIn the context of fiscal policy, what is a budget surplus? 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_forward
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