The U.S. debt problem could be solved, but each solution comes with unintended consequences. For example, if government prints more money this may cause __________.  If government raises taxes this may cause ___________.  If government cuts spending this may ____________. And if government borrows more and more money this may cause ___________.   Hyperinflation; deflation and employment; cause default on the debt; a stronger U.S. dollar. A deflationary spiral; GDP to fall; a debt jubilee; the need for China/IMF to bailout the U.S.     Currency collapse; inflation; hurt the wealthy; narrowing of Exter’s Pyramid and stability.     An inflationary spiral; stagflation; hurt the elderly, disabled and the poor; a debt crisis.

Q: How will the deficit for the bottom line budget of $3.1 trillion affect the economy?

A: The budget deficit would result in the increase of the government expenditures over the revenues.…

Q: Suppose we wanted to use fiscal policy (a change in taxes OR a change in government spending) in…

A: Fiscal policy refers to the use of government spending and taxation to influence the economy. It is…

Q: Describe fiscal policy. How can it affect the money supply, interest rates, and the expansion and…

A: Fiscal policy refers to the method of government spending and tax policies to take a control over…

Q: An example of fiscal policy is an increase in_____by the_____, which_____aggregate demand.       1)…

A: Fiscal policy refers to intervention by the government to eliminate the challenges faced by…

Q: Should fiscal policy encourage more consumption or more saving? Does it matter? I need a reason why.

A: The fiscal (F) and monetary (M) policies help to control and maintain economic fluctuations such as…

Q: If the budget deficit is lower than it was last year, we could say that..

A: Government budget refers to a financial plan outlining the expected revenues and expenditures of a…

Q: Explain the role of the Presidency and the Congress in the budget proces

A: A budget process refers to the mechanism by which a budget is generated and approved by government.

Q: Give a brief definition of fiscal policy?  What are its economic goals?    Fiscal policy is the use…

A: Answer: Definition of fiscal policy: Fiscal policy is a policy of government wherein the government…

Q: what are the objectives of fiscal policy?

A: A fiscal policy is a policy of taxation and spending decisions taken by the government. The main…

Q: If tax cuts don't cause enough economic growth,  we might also need to reduce expenditures to reduce…

A: Increase revenue or decrease spending are the two ways to reduce a budget deficit.  Tax cuts are…

Q: Government expenditures and the assessment of taxes is an issue that goes back to the origins of the…

A: Legislators and politicians choose to spend money for a variety of reasons. These can include…

Q: Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go…

A: As the tax rate goes down, expectation of tax aversion or tax avoidance likewise goes down. Each…

Q: What would be the primary deficit if the fiscal deficit is $700 and Interest payment is $300 ?

A: A fiscal deficit is a setback in an administration's pay contrasted and its spending. An…

Q: Discuss the government’s use of discretionary fiscal policy in controlling economic fluctuations.

A: Fiscal policy refers to the government policy of expenditure and taxes. The changes in the tax and…

Q: Suppose the US Federal Government decides to engage in deficit spending whereby it increases its…

A: Fiscal policy means using government expenditure and tax policies to influence the economic path…

Q: Why do you think that expansionary fiscal policy can fail during a recession?

A: Recession is a situation in the economy, when there is general decline in the economic activity. For…

Q: What role does fiscal policy play in influencing aggregate demand and managing economic…

A: Fiscal policy refers to the use of government spending, taxation, and borrowing to influence the…

Q: 2. What is the largest component of the federal budget? A) Entitlements C) Defense B) Net interest

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: If the total receipts are $1200 billion and total expenditure is $1500 billion then how much will be…

A:

Q: Which of the following sentences correctly describes the budget of the Federal Government of the…

A: The budget deficit states that the government's expenditure surpasses the government's revenue. The…

Q: Our macroeconomic model suggests that after a decline in aggregate demand like that of 2007, the…

A: "GDP (gross domestic product) measures the value of all finished goods and services produced within…

Q: The table shows the tax revenues and the outlays of a nation at each level of real GDP. What is…

A: Tax revenue is the earnings that authorities receive from taxes. The main element of state earnings…

Q: You are the Secretary of the Treasury, working with the president to implement appropriate policies.…

A: Fiscal policy is set by the government to influence economic growth. It  is a change in government…