As a result of a federal budget surplus, the U.S. government can do all of the following except: Group of answer choices
Invest in the stock market. Increase income transfers. Reduce the existing debt. Cut taxes.
Ans: Invest in the stock market
Explanation:
When the U.S government has budget surplus then the government can increase income transfers, reduce the existing debt ( external and internal debt) and reduce tax rate.But the government will not invest the surplus budget in the stock market.
As a result of a federal budget surplus, the U.S. government can do all of the...
Since 1980, how many fiscal years has the U.S. federal government recorded a budget surplus? Group of answer choices 5 4 2 3
1. From whence do Government Securities originate? a) The U.S. Treasury as a result of budget surpluses b) The U.S. Treasury as a result of budget deficits c) The Federal Reserve as a result of Open Market Purchases d) The Federal Reserve as a result of Open Market Sales
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
7. Dawn states: “As a result of a spending increase by the federal government the budget deficit increase and this will lead to a decrease in Demand in the loanable funds market and result in lower real interest rates. Do you agree or disagree? Carefully Explain.
The Current U.S. government spending is $4.746 trillion. That's the federal budget for fiscal year 2020 covering October 1, 2019, to September 30, 2020. It's 21% of gross domestic product. That means that Government Spending in the United States has increased under the current U.S. Administration. Additionally, last year the Congress passed a tax reform that, among other effects, cut payroll taxes: i) Can you establish the macroeconomics effects of these policies on consumption, investment, interest rate and savings? Use...
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
3. The U.S. federal government finances budget deficits by A. selling stock, much like a corporation. B. printing additional currency. C. borrowing from the public. D. raising property taxes. E. raising sales taxes. 4. According to long-run projections, under current law, A. federal government spending as a percentage of GDP will rise gradually but substantially in the next several decades. B. federal taxes as a percentage of GDP will rise gradually but substantially in the next several decades. C. the...
Related to the Economics in Practice Federal government expenditures and receipts for the simple economy of the nation of Topanga are listed in the table below. The government of Topanga would like to reduce the debt-to-GDP ratio, and the Finance Minister of Topanga has proposed the following: "The best way to reduce the debt-to-GDP ratio is to increase GDP, because with a larger GDP, the ratio will have to get smaller. I therefore propose that government expenditures be increased by...
As a result of government borrowing to cover deficits, citizens increase the supply of savings to provide themselves with funds to pay anticipated increases in future taxes. Then it follows that increased government borrowing will O reduce private investment. increase private investment Ohave no effect of private investment. O increase interest rates. O both (a) and (d) Government borrowing will: O postpone taxation to the future. increase government interest cost. both (a) and (b) O eliminate taxes. The largest portion...
All of the following laws apply to actions by the federal government except the: Group of answer choices Freedom of Information Act. Privacy Act. Computer Security Act. Children's Online Privacy Protection Act. E-Government Act.