MACROECONOMICS
14th Edition
ISBN: 9781337794985
Author: Baumol
Publisher: CENGAGE L
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Question
Chapter 16, Problem 1DQ
To determine
To describe: The reasons for owing a debt of $21 trillion by the US government and its effects on the future generations.
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Students have asked these similar questions
The U.S. government's debt is currently about
$20 trillion, which is 105% of GDP. How much
debt is too much debt for our country?
How could the government lower the federal deficit?
If you voted for your committees to increase overall spending under your jurisdiction, resulting in a budget deficit for the overall federal budget, what would you expect to see happen to the national debt?
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Similar questions
- Why do governments typically issue general long-term debt? What types of services might be limited if debt was no longer a financing option?arrow_forwardHow does the federal government finance a budget deficit? It prints more money. It purchases U.S. Treasury bonds. It cuts spending on entitlement programs. It borrows funds by selling Treasury bonds.arrow_forwardHow fiscal policy works, and its benefits.arrow_forward
- Government expenditures and the assessment of taxes is an issue that goes back to the origins of the United States. Why do legislators and other politicians choose to spend so much money? What is the federal deficit and how is it different from the national debt? What has happened recently to federal deficits and the national debt, and what are some risks associated with persistently high deficits and a large national debt?arrow_forwardWhat is deficit, and why is the government willing to do this? What is expected to happen to the US debt in the future? What categories do we spend the most federal money on? Is the US worse off when it comes to national debt then other countries? Who does the US owe money too? Who owes the US the most amount of money?arrow_forwardWhat effect did the economic program have on the federal deficit?arrow_forward
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