Summarize MMT in one sentence.Why should federal debt be thought of differently than household debt?If fiscal budgets don’t need to balance, what should we be trying to balance in an economy?Explain how a government deficit is society’s surplus.If we don’t care about the size of the “deficit”, then is there NO limit on government spending?How does MMT advise that the above problem be handled?

MMT means Modern monetary or money theory.

Answered: Summarize MMT in one sentence.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 51P: A government starts off with a total debt of $3.5 billion. In year one, the government runs a...

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Summarize MMT in one sentence.
Why should federal debt be thought of differently than household debt?
If fiscal budgets don’t need to balance, what should we be trying to balance in an economy?
Explain how a government deficit is society’s surplus.
If we don’t care about the size of the “deficit”, then is there NO limit on government spending?
How does MMT advise that the above problem be handled?

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