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1. When the federal government spends more than it takes in via taxes, it runs a fiscal deficit. A common reaction to fiscal deficits is that they are bad because if a household consistently spent more money than it took in via income, it would be overwhelmed by crushing debt and eventually have to severely cut back spending. Why is this not the case for the federal government? es se the " Lese.

1. When the federal government spends more than it takes in via taxes, it runs a fiscal deficit. A common reaction to fiscal deficits is that they are bad because if a household consistently spent more money than it took in via income, it would be overwhelmed by crushing debt and eventually have to severely cut back spending. Why is this not the case for the federal government? es se the " Lese.

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 1P
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1. When the federal government spends more than it takes in via taxes, it runs a fiscal deficit. A common reaction to fiscal deficits is that they are bad because if a household consistently spent more money than it took in via income, it would be overwhelmed by crushing debt and eventually have to severely cut back spending. Why is this not the case for the federal government? you thee Le
Transcribed Image Text:1. When the federal government spends more than it takes in via taxes, it runs a fiscal deficit. A common reaction to fiscal deficits is that they are bad because if a household consistently spent more money than it took in via income, it would be overwhelmed by crushing debt and eventually have to severely cut back spending. Why is this not the case for the federal government? you thee Le
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