If a government runs a budget deficit in one year, and a budget surplus the next...
If a government runs a budget deficit in one year, and a budget surplus the next year, what is the impact on the national debt?
Group of answer choices
The national debt remains unchanged
The national debt decreases
Indeterminate without the magnitudes of the deficit and surplus
The national debt increases
Homework Answers
Correct option is (3).
National debt at end of year N = National debt at beginning of year N + Budget surplus - Budget deficit
Unless we know exact values of budget surplus and deficit, we can't compute the value of national debt.
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If a government runs a budget deficit in one year, and a budget
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Suppose that the U.S. government significantly increases its budget deficit and finances the resulting debt by...
Suppose that the U.S. government significantly increases its
budget deficit and finances the resulting debt by selling
government bonds to Canadians. What would be the impact of this
action on the bond markets
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Match the terms with their definition. Budget surplus Budget deficit Balanced budget Government debt Answer Bank when the government receives more in taxes than it spends in a given time period the total accumulated amount that the government has borrowed and not yet paid back over time when the federal government spends more than it collects in taxes in a given time period when government spending and taxes are equal
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This Question: 1 pt Compared to a balanced budget, when the government runs a budget deficit, O A. interest rates rise, and firms' private investment increases. OB. interest rates fall, and firms' private investment decreases. OC. Interest rates rise, and firms' private investment decreases. OD. Interest rates fall, and firms' private investment increases. Click to select your answer.
Suppose that the U.S. government significantly increases its
budget deficit and finances the resulting debt by selling
government bonds to Canadians. What would be the impact of this
action on the bond markets
Suppose that the U.S. government significantly increases its budget deficit and finances the resulting debt by selling government bonds to Canadians. What would be the impact of this action on the bond markets.
Match the terms with their definition. Budget surplus Budget deficit Balanced budget Government debt Answer Bank when the government receives more in taxes than it spends in a given time period the total accumulated amount that the government has borrowed and not yet paid back over time when the federal government spends more than it collects in taxes in a given time period when government spending and taxes are equal
** LUIE detination Fiscal policy Budget deficit Budget surplus National Debt Marginal Tax Rate Progressive tax Regressive tax Deficit Dove Deficit Hawk Automatic Stabilizers Laffer curve 1. Use the loanable funds model to explain why classicals argue that government deficits crowd out private spending. Explain why Keynesians argue that government deficits crowd in private spending. 2. Explain the logic behind "trickle down economics" (i.e the supply-side argument in favor of cutting taxes on the wealthy). Explain why Keynesians don't believe...
5) In the table below are the Canadian federal budget surplus/deficit for each year as indicated. The total federal debt at the end of 2014 was approximately $626,000,000,000. i) Calculate the debt at the end of each year and enter it in the corresponding debt cell (minus all the zeros). (4+2+2 marks) 2014 Year +Surplus/- deficit 2015 - 2.9 bil 2016 - 5.5 bil 2017 - 17.1 bil 2018 - 19.7 bil $626 bil Federal Gov't Debt * numbers are...
Use the loanable funds model to analyze the effects of a government budget deficit: -Draw the diagram showing the initial equilibrium of the loanable fund market in the below perpendicular axis. 1 point -Determine which curve shifts when the government runs a budget deficit (explain), and draw the new curve on your diagram. I point -What happens to the equilibrium values of the interest rate and investment? Explain. 1 point -Determine the relationship between the crowding-out effect and investment, explain...
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