Answer this for me mate. Much appreciated. 1. List the categories of spending you would decrease, and how much you would decreaseeach in order to balance the budget.2. Identify a category of spending you would like to increase and explain why. What willhave to happen in order to balance the budget if you increase spending in that category?3. Select one category of spending you chose to decrease. Give an example of a specificpotential opportunity cost of decreasing spending in that category.4. Do you think that balancing the federal budget would be relatively easy or relativelydifficult? Explain.

NOTE:- “Since you have asked multiple questions, we will solve the first question for you. If you want any specific question to be solved then please specify the question number or post only that question.” Balance the budget:- A balanced budget is one in which total expected income equals entire planned spending in the financial planning or budgeting process. This phrase is most commonly used to refer to budgeting in the public sector (government).In retrospect, a budget can be called balanced after a full year's worth of revenues and expenses have been incurred and documented. A balanced budget is one in which total revenues equal or exceed total costs. After a full year of revenues and expenses have been incurred and recorded, a budget can be declared balanced. Budget deficits say, proponents of a balanced budget, place a debt burden on future generations.Answer:-1 Money is spent by the federal, state, and municipal governments to provide a range of services. A budget surplus occurs when the government receives more money in taxes than it spends in a given year. A balanced budget requires the government's spending and revenues to be equal.In 2009, for example, the US government had its greatest budget deficit ever, spending $1.4 trillion more than it received in taxes. In 2009, the budget deficit was around 10% of GDP, making it the biggest in terms of GDP since the massive borrowing required to finance World War II. Total U.S. Government Spending In nominal dollars (dollars not adjusted for inflation), federal spending has surged by a factor of 38 over the last four decades, from $93.4 billion in 1960 to $3.9 trillion in 2014. It's deceptive to compare spending in nominal dollars over time since it ignores inflation, population growth, and the real economy. Examining government spending as a proportion of GDP over time is a more useful comparison tool. The government borrows money from both Americans and foreigners to cover budget problems. It does so by selling securities (Treasury bonds, notes, and bills), which allows it to borrow money from the general public and promise to repay it with interest later. The US government ran budget deficits almost every year from 1961 through 1997, necessitating borrowing. It had fiscal surpluses from 1998 to 2001 before returning to deficits. State and Local Government Spending Despite the fact that the federal government receives the majority of media coverage, state and local government spending is also large, totaling almost $3.1 trillion in 2014. Education is the single most important factor, accounting for almost one-third of the total. The remaining initiatives include highways, libraries, hospitals and healthcare, parks, and police and fire protection. Unlike the federal government, all states (save Vermont) have balanced budget laws, which require any revenue shortfalls to be filled through higher taxes, reduced spending, or the use of previously saved funds, or a combination of these measures. Key Concepts and Summary Fiscal policy refers to the spending, taxation, and borrowing policies of the federal government. In recent decades, the level of federal government expenditure and taxes as a percentage of GDP has been relatively constant, ranging between 18 and 22 percent of GDP. However, during the last four decades, state spending and taxes as a percentage of GDP have climbed from around 12–13 percent to around 20%. National defense, Social Security, healthcare, and interest payments are the four largest sectors of federal spending, accounting for roughly 70% of total spending. A budget deficit occurs when a government spends more than it collects in taxes. A budget surplus occurs when a government collects more in taxes than it spends. A balanced budget is one in which government expenditure and revenues are equal. The government debt is the total of all previous deficits and surpluses.

Answered: 1. List the categories of spending you…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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