5)A: What is the difference between a deficit and the national debt. B: What do we mean by The Crowding Out Effect? C: Using graphs for support, explain how increases in the budget deficit result in larger trade deficits. D: In 1988 interest on the national debt was $214 billion and in 2018 it was $532 billion. In 1988 10% of the interest was paid to the foreign sector and in 2018 28% was paid to the foreign sector. In percentage terms, how much did interest paid to the foreign sector increase between 1988 and 2018? Do, subpart B, C , D For answer for A - A budget deficit is defined as the difference between the federal government spends (also called as the outlays) and what it accounts for (also called as the revenue or receipts). The national debt is also called as the public debt, which would estimate federal government borrowing money that would cover substantial years of budget deficits. When there are higher budget deficits it would result in the large foreign-held debt, which is caused due to the increase in the value of the dollar. It would further cause an increase in the high rates and would result in holding bonds and other dollar-denominated assets to be more attractive. It would cause an impact on the trade deficit (that can cause a gross debt of the money of the government-owned by itself and would not even cause an indirect relationship caused to the trade deficits. So the larger the budget deficit every year would cause a higher national debt to repay back.
5)A: What is the difference between a deficit and the national debt.
B: What do we mean by The Crowding Out Effect?
C: Using graphs for support, explain how increases in the budget deficit result in larger trade deficits.
D: In 1988 interest on the national debt was $214 billion and in 2018 it was $532 billion. In 1988 10% of the interest was paid to the foreign sector and in 2018 28% was paid to the foreign sector. In percentage terms, how much did interest paid to the foreign sector increase between 1988 and 2018?
Do, subpart B, C , D
For answer for A -
A budget deficit is defined as the difference between the federal government spends (also called as the outlays) and what it accounts for (also called as the revenue or receipts).
The national debt is also called as the public debt, which would estimate federal government borrowing money that would cover substantial years of budget deficits.
When there are higher budget deficits it would result in the large foreign-held debt, which is caused due to the increase in the value of the dollar. It would further cause an increase in the high rates and would result in holding bonds and other dollar-denominated assets to be more attractive. It would cause an impact on the
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