Question

Sub-Project 2: Pick an article from a reputable source (CNBC, The Economist, Financial Times, etc.) that discusses about the deficit in fiscal year 2020 and how that affects the debt for the US economy and possible solutions. Discuss the main points in the article and also possible solutions moving forward.

Answer 1

There exist 3.1 trillion dollar deficit in the 2020 fiscal year. These include many months struck of the pandemic. All the amount that the federal has been spending throughout the year.The total overall deficit have become the record amount in history of America. The deficit in budget are 1 among the factors which have contributions for the national debt.US government undertaking measures for paying off its dept by the budget surplus amounts.increased amount of fiscal deficit is not healthy for an economy as it then leads to creation of information along with crowding out of the private investment.the situation of inflation in which the government experiences public expenditure by creation of new money as it leads to increase of money stock in the economy. Up to31st August 2020 the public raised Federal dept of about 20.8 3 trillion dollars and along with that intergovernmental Holdings computed to 5.88 trillion dollars and the total National debt was about 26.7 zero trillion dollars.heavy fiscal deficit leads to increased rates of interest which are to be charged on the lending amount. Higher fiscal deficit indicate increased government borrowingwhich leads to increased rate of interest for the economy.