Question

How budget deficits and national debt are defined? Is it a good policy for the government...

How budget deficits and national debt are defined?

Is it a good policy for the government to create budget deficit? Why and why not?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Budget deficits is difference between all receipts and expenses in both revenue and capital account of government exceeds capital receipts. it leads to capital account deficit. it is usually expressed as percentage of GDP.

National debt is the total debt, or unpaid borrowed funds carried by government, which is measured as the face value of currently outstanding treasury securitis that have been issued by the treasury and other government agencies,

these types of deficits and debts are relatively harmless, the result of such debtors tax is to reduce consumption, savings and investments so that over time, servicing interest payments on the debt effectively reduces the nations economic growth.

PLEASE DO LIKE

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
How budget deficits and national debt are defined? Is it a good policy for the government...
How budget deficits and national debt are defined? Is it a good policy for the government to create a budget deficit? Why and why not?
Budget Deficits and the National Debt The debate about the national debt has been around for...
Budget Deficits and the National Debt The debate about the national debt has been around for a long time. Review this article about it: Schneider, Bill. (Feb 6, 2015). The War Between Congress and the White House. Reuters. And, in addition to the discussion of it in the textbook, please read the following Spark Notes about the national debt: SparkNotes. Policy Debates: Budget Deficit. Now, reflect on everything that you’ve learned about this debate. Then post one major reason why...
One of the widely debated issues in macroeconomic policy is related government budget, which involves government...
One of the widely debated issues in macroeconomic policy is related government budget, which involves government spending and taxes. a. Should the government always balance its budget? If you think it should, what steps do you suggest that it should take to balance its budget? b. What is the relationship between budget deficits and national (public) debt? Why has the USA national debt been increasing for decades?
1. Whether or not deficits create a burden depends on how and why the government incurred...
1. Whether or not deficits create a burden depends on how and why the government incurred the deficits in the first place. Explain. 2. Explain why the portion of the national debt owed to foreigners is a serious matter, whereas the portion owed to U.S. citizens is of less concern. Why does the U.S. national debt pose less of a problem than the debts of Greece in 2010?
Together with large current account deficits, the Argentine government began running increasingly large budget deficits. How...
Together with large current account deficits, the Argentine government began running increasingly large budget deficits. How might this be structurally related to the choice of a fixed exchange rate regime? deficits were needed to finance capital outflow at the established rate with no monetary policy, fiscal policy became the only macroeconomic policy tool to fight recessions fiscal profligacy had nothing to do with the exchange rate, Argentina's political leadership was as irresponsible as its monetary leadership had been the debt...
Question Government deficits and debt. A-Are fiscal deficits and government debt a problem? Why/why not? B-What...
Question Government deficits and debt. A-Are fiscal deficits and government debt a problem? Why/why not? B-What advice would you give a heavily indebted government?
In some countries there is a concern that the government will run large budget deficits and...
In some countries there is a concern that the government will run large budget deficits and force the country’s central bank to “monetize the deficit” by purchasing government bonds and providing money to the government. The resulting increase in the money supply will then lead to high rates of inflation. Briefly explain why this is not a concern in Canada
In some countries there is a concern that the government will run large budget deficits and...
In some countries there is a concern that the government will run large budget deficits and force the country’s central bank to “monetize the deficit” by purchasing government bonds and providing money to the government. The resulting increase in the money supply will then lead to high rates of inflation. Briefly explain why this is not a concern in Canada.
1. What is the difference between the budget deficit and the national debt? 2. Of the...
1. What is the difference between the budget deficit and the national debt? 2. Of the two policy - monetary and fiscal; which would be a faster policy to implement to correct a macroeconomic disequilibrium and why . 3. If the Fed pursues expansionary monetary policy, what happen to money supply, interest rates and real GDP? 4. In order to reduce inflationary pressure on the economy, what fiscal policy can the government use? For example, the current economy is producing...
During the Great Recession, budget deficits grew dramatically as tax revenues decreased and government spending increased....
During the Great Recession, budget deficits grew dramatically as tax revenues decreased and government spending increased. Which of the following caused the higher budget deficits A.Budget deficits increased due to crowding-out. B.Budget deficits increased due to automatic stabilizers. C.Budget deficits increased due to countercyclical fiscal policy. D.Budget deficits increased due to recognition lags. E.Budget deficits increased due to expansionary fiscal policy.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT