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 servicessum of the personal debt of all citizens in the United StatesC.total amount owed by the federal government to owners of government securitiesd. difference between the government's revenues and expenditures in one fiscal yeara.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 year it is mandatory for the federal government to:repay its debta.b. repay its debt to foreigners (the external debt)C.pay interest on its outstanding bonds (debt)d.run a budget surplus if it had a budget deficit in the previous year16. Crowding out refers to the situation in which:increased borrowing by the federal government raises interest rates and decreases investmentincreased borrowing by the federal government improves business expectations and increases investmenta.b.c. foreigners sell their U.S. government bonds and purchase U.S. goods and servicesd. increased federal taxes to balance the budget cause increased interest rates and decreased consumer borrowingMLDING1 p.0"/

DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…

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: a. difference between a nation's exports and imports of goods and services b. 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 SS#14-D-The Debate over Deficits and the Debt 372- "Three Questions," p. 4 of SS#14) DING Р

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: a. difference between a nation's exports and imports of goods and services b. 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 SS#14-D-The Debate over Deficits and the Debt 372- "Three Questions," p. 4 of SS#14) DING Р

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

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.
Is it possible for a nation to run budget deficits and still have its debt/GDP ratio fall? Explain your answer. Is it possible for a nation to run budget surpluses and still have its debt/GDP ratio rise? Explain your answer.
What is the relationship between budget deficit and debt ratio to Gross Domestic Product (GDP)
view picture
Read the following premise carefully and answer the questions specifically and in detail. "In the face of unstable economic growth due to a recession or accelerated inflation, the potential problems of high public debt include increased income inequality, reduced economic incentives, and crowding out private investment." 1. Explains in detail fiscal policy, its role and its effects on short- and long-term economic fluctuations. 2. Explain each of the tools that exist in expansionary fiscal policy and contractionary fiscal policy.
In year one government taxes are 590,000 and government spending is 600,000 in year two government taxes are 590,000 and government spending is 590,000 in year three government taxes are 630,000 and government spending is 600,000. What is the government deficit for year two and provide the size of the government debt or surplus at the end of all three year.
1. What is deficit budget? What measures Government can take to bring their budget into surplus? Explain your answer.
What is the relationship between the government deficit and debt? Why is it essential that governments make the payments on their debts?
What budget changes would have to occur in order to lower an annual deficit? Annual expenditures would have to rise. Annual expenditures would have to decline and annual tax collections would have to rise. Annual tax collections would have to fall. Annual expenditures would have to rise and annual tax collections would have to fall.
explain the impact of balanced budget on national debt
What's the difference between a structural and a passive budget deficit? What contributes to a passive deficit? Use the distinction between passive and structural deficits and surpluses to explain how the $5.9 trillion surplus that economists back in 2000 predicted would occur over 15 years quickly disappeared during the 2001/2002 recession
In addition to issuing bonds, explain any two major ways the government can raise revenue to finance her spending