Economics: Private and Public Choice
16th Edition
ISBN: 9781337642224
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel
Publisher: Cengage Learning US
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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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Economics: Private and Public Choice
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- why do major events such as wars cause the national debt to increasearrow_forwardIf 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_forward
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- In 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_forwardWhat policy might the federal government implement with regard to taxes and spending to help stop the economy from falling into recession?arrow_forwardWill a budget deficit be more expansionary if it is financed by borrowing from the Federal Reserve or from the general public? Explain.arrow_forward
- Will Increase in government spending financed by borrowing help promote a strong recovery from a severe recession? Why or why not?arrow_forwardWhy do governments typically issue general long-term debt? What types of services might be limited if debt was no longer a financing option?arrow_forwardIf you were the Prime Minister of Malaysia, what would you do to reduce the fiscal deficit of the country? Explain in detail.arrow_forward
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