explain the dangers of high debt?

Q: Explain Lerner view on debt financing

A: Debt financing: It means when money is borrowed by a company to be paid back at a future date with…

Q: Why would the private sector purchase government debt?

A: Government debt refers to government selling secuities and other instruments that are used to raise…

Q: How will the deficit for the bottom line budget of $3.1 trillion affect the economy?

A: The budget deficit would result in the increase of the government expenditures over the revenues.…

Q: Match the terms with their definition. Budget surplus Budget deficit Balanced budget Government…

A: Surplus: The term surplus refers to the amount that has been left after meeting the requirement is…

Q: What are the main categories of U.S. federal government taxes?

A: Taxes are the major source of revenue of government. Government collects taxes from the public and…

Q: When the economy is in recession, government revenue falls due to a falling tax base. Therefore the…

A: Fiscal policy is the adjustment of spending and taxes by the government with a purpose to maintain…

Q: What are the the Costs and Benefits of Deficits?

A: The deficit is the situation when expenditure is higher than the revenues of an economy.

Q: How can we determine the Cost of Debt?

A: The cost of debt calculation is useful in determining the average rate a business is paying for…

Q: Why do the creditors generally charge higher interest rates on new borrowing?

A: The interest rate is the amount that the creditor charges with the principal from the borrower to…

Q: Suppose the government starts running budget deficits without raising taxes or printing money. What…

A: 1. When the government start running budget deficit without raising the taxes, it will make them to…

Q: What finances the majority of federal spending?

A: What finances the majority of federal spending? There are various sources of the Federal government…

Q: What is student debt?

A: Student debt is money due on a loan that has been taken out to pay for costs for college. For…

Q: Review/main features of current federal budget

A: The federal budget shows the estimated expenditure and revenue of the U.S. government in a fiscal…

Q: Why people buy public debt, even if it does not pay any interest?

A: Public debt is the debt that a nation owes to lenders outside the nation. These lenders can be…

Q: Can the method of loan repayment also have a significant impact on taxes? How?

A: Yes, method of loan repayment also have a significant impact on taxes.

Q: What are the budget deficits

A: Budget- It is a financial plan for a particular time period.

Q: explain the dangers of high debt, defualt risk, and vicious cycles

A: Dangers of high debt:   When nations face situation of high debt which lead to following main…

Q: Describe Debt Management?

A: Debt Management refers to management of the debt with the help of financial budgeting and planning.

Q: Explain what effect a large federal deficit might have on interest rates?

A: The deficit in the budget arises when the government faces higher government spending with lesser…

Q: What is Internal Debt?

A: Internal debt is also known as Domestic Debt

Q: What is a budget deficit? How does it affect interest rates, investments and economic growth?

A: Budget deficits happen when spending is greater than revenue and signify the financial strength of a…

Q: WHich are two main types of debt instruments issued by the Australian Government?

A: Debt is an obligation that legally binds the borrower to pay back the lender the principal amount…

Q: The U.S. government's debt is currently about $20 trillion, which is 105% of GDP. How much debt is…

A: US government debt = $20 trillion And it's currently 105% of the GDP level

Q: Why do most creditors prefer low debt ratios?

A: Debt to Equity(D/E) ratio is calculated  as: Total Liabilities/Shareholder’s Equity A low debt ratio…

Q: Explain the short term and long term debt instruments

A: The instruments used in the financial markets are the instruments that are used to transact or even…

Q: Explain how the federal government finances and services its outstanding debt

A: Government debt, or national debt, is formed from all prior budget deficits of an economy accrued,…

Q: Explain the government budget deficit and debt and how this can cause crowding out for loanable…

A: As economies and societies developed, the study of economics got more complicated. Hence, as a…

Q: How will you identify budget deficits?

A: Budget deficit is a negative budget balance, where Budget balance = Tax revenue - Government…

Q: What is a government budget deficit? How doesit affect interest rates, investment, and…

A: A government budget deficit occurs as spending exceeds revenue and shows a country's financial…

Q: Should governments pay off their debts and not be allowed to borrow any more except under special…

A: money borrowed by the government generally to provide public services: The government intends to use…

Q: What is the fundamental difference in the way businesses approach debt andthe way consumers approach…

A: Debt is the amount of money extracted by individuals or firms from other individuals and firms,…

Q: What are the factors that will determine the size of some future required tax increase to pay off…

A: Although lowering debt and boosting the economy are the general aims of most policymakers in…

Q: What is government surplus or deficit

A: Equilibrium level of formula;  Y = C + I + G

Q: Why do government budget deficit grow during recessions?

A: Recession is refers to the situation of lower economic activity. During recession, the economic…

Q: True or False: Negative debt always carries a high interest rate and high fees.

A: A negative debt for a company or organization means that the company is in a situation where its…

Q: Explain Debt Management?

A: Debt refers to the sum of money that is owed by an individual or corporation to the lending party.…

Q: Assume a government starts with zero debt. This government then runs an annual deficit for 28 years…

A: The financial liabilities of the government sector are referred to as gross government debt (also…