Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 12, Problem 10CQ
To determine
Current and future effects of high debt in the US economy.
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Is rising national debt is harmful to the U.S economy?
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During difficult economic times, why are uniform across-the-board budget cuts poor fiscal policy?
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Economics: Private and Public Choice (MindTap Course List)
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- How is the Social Security system currently influencing the size of the budget deficit? If it is not re-formed, how will Social Security influence the budget deficit a decade from now? Is this a cause for concern? Why or why not?arrow_forwardWhat are the implications of the current fiscal stimulus and low interest on the future of our country from an economic perspective?arrow_forwardwhy do major events such as wars cause the national debt to increasearrow_forward
- If stability of the economy is the primary objective of Fiscal Policy, then an Annually Balanced Budget (Government Expenditures = Tax Revenues) is the best policy approach. True or False?arrow_forwardWhy it could be the case that after an initial sharp increase, the budget deficit could drop through time (as it did in the USA after the 2008 financial crisis)?arrow_forwardWhat type of fiscal policy would be appropriate to use during a recessionary period? How might this affect aggregate demand, unemployment, and inflation?arrow_forward
- What effect did the economic program have on the federal deficit?arrow_forwardHow could the government lower the federal deficit?arrow_forwardIn the fiscal year 2019, the projected U.S. federal government deficit totaled $960 billion, which is 23.2 percent higher than a year earlier. Given the information in the news clip, what was the total change in U.S. national debt during the fiscal years 2018 and 2019?arrow_forward
- Will a budget deficit be more expansionary if it is financed by borrowing from the Federal Reserve or from the general public? Explain.arrow_forwardDYNAMIC TAX SCORING—WHAT IS IT, AND WHO WANTS IT? Go to www.google.com and search for information on “dynamic tax scoring.” What is it? How does it relate to supply-side economics? Which political groups support this approach, and why? What groups oppose it, and why?arrow_forwardList what specific, deliberate actions the federal government could take to enact expansionary fiscal policy.arrow_forward
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