The size of the national debt increases when the federal government runs a deficit. True or False True False

Q: What is the relationship between a budget deficit and the national debt? A budget deficit adds to…

A: A budget deficit is the excess of government spending over government taxes.  i.e., Budget deficit =…

Q: The fiscal deficit of the government is $8700 million and the interest payments made by the…

A: In the above given question, we are given with the values as:- Fiscal deficit = $8700 Interest…

Q: Explain and expand on How does fiscal discipline help businesses to grow in an economy?

A: Fiscal Discipline can be defined as a state when there is an ideal balance between the revenue and…

Q: A government budget shows the primary deficit of 6100 billion the revenue expenditure on interest…

A:

Q: Differentiate between the following terms: a. a budget deficit.  b. the government debt.  c. a…

A: a. When the expenditure of individuals, Government, or company surpass the revenue then it is called…

Q: As per the government budget, the interest payments are estimated at $10,000 which is 40% of the…

A: The information being given is:- Interest payment = 10,000 This is the 40% value of primary deficit…

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: True or false and explain: The national debt represents a threat of bankruptcy.

A: No. Country cannot become bankruptcy. Generally country can exist longer time period, if it is…

Q: What are some the long run risks of large deficits and significant increases in the federal debt as…

A: When expenses outnumber revenues, imports outnumber exports, or liabilities outnumber assets, an…

Q: Tax rate rise when the income of the consumer rise in case of progressive tax system.  True/False

A: We have different types of tax system depending upon how the tax rate behaves with change in income.…

Q: Fiscal deficit indicates the total borrowings requirements of the government from all the sources.…

A: #Fiscal deficit is given as a difference between the total expenditure of the government and total…

Q: Suppose potential GDP is $20 trillion. If the economy produces at potential, then the government…

A: When the government decides to balance the budget they effort for economic activities to equalize…

Q: Uruguay is a small country in Latin America. GDP is 100. Debt is 100. Government spending on goods…

A:

Q: Calculate the value of fiscal deficit given the interest payments equal to $500 million and the…

A: The information given to us is as follows:- Borrowings of the government = $5000 million Interest…

Q: TRUE/FALSE  As of 2010, interest payments on the federal debt exceeded 10% of totalexpenditures.

A: Interest refers to the nominal or a prescribed rate implied by the government or federal reserve of…

Q: If Tax revenue is greater than government spending, which of the following must be true? Select ALL…

A: The difference between the government spending and tax revenue is referred as budget.

Q: Q- Calculate the budgetary deficit when total expenditure is 200000 and total receipts are 88000

A: # Budgetary deficit is referred to be as the difference between total expenditure and total receipts…

Q: Economics n response to the Covid-19 pandemic, the Canadian government responded with an economic…

A: a)There would be redistribution of income between current and future workers,because debt was for…

Q: Very short answer question (1) Calculate the fiscal deficit given:- -> Borrowings = 9000…

A: # Fiscal deficit arises in a situation whereby the goverment's expenditure in comparison to its…

Q: Examples of a long term debt cycle

A: Bonds would be example of long term debt cycle.Bonds are sold and bought and it takes time for bond…

Q: Which of the following owns the largest proportion of the national debt?

A: The national debt is the total public debt held by the US Federal government which is the amount of…

Q: in a government budget the primary deficit is $10,000 million and the interest payments is dollar…

A: In an economy, government make expenditure for different purposes that may lwad to arise primary and…

Q: Define the budget deficit

A: A budget is a financial document of the economy. This includes the expected revenue of the…

Q: Deficit financing the national debt. Increases O Exceeds Solves

A: The deficit is the difference between government spending and earnings, and spending comprises both…

Q: Consider a family of four in 2008, whose poverty threshold is $22,024. If this family's total income…

A: Since you have asked multiple questions, we will answer the second question for you. If you want any…

Q: The U.S. national debt equals the sum of government deficits over time. True or False True False

A: Government deficit indicates the excess of government revenues over the income of the government.

Q: A country has a rate of growth (g) of 1.00%, a debt-to-income ratio of 92% and a primary deficit of…

A: Growth rate of country = 1.00% Debt to income ratio = 92% Debt to income ratio increase to  = 102%…

Q: Explain how a budget deficit arises and what actions governments must take in this circumstance. How…

A: please find the answer below.

Q: The Federal Reserve and the federal government agencies hold more than half the public debt.  TRUE…

A: The abovementioned statement is FALSE.

Q: Taxation; an essential fiscal policy tool for moblizing resources for socio-economic development…

A: The above mention passage, it is talking about taxation and fiscal policy regarding taxation and…

Q: The largest single portion of the federal budget is devoted to A. interest payments on the…

A: Federal budget is divided into various uses, rnaging from education and Medicare to social security…

Q: A country has a rate of growth (g) of 1.00%, a debt-to-income ratio of 92% and a primary deficit of…

A: Lenders use the debt-to-income (DTI) magnitude relation to live your borrowing risk. it's the share…

Q: Many communities today are concerned with their local government's ability to appropriately manage…

A: Fiscal policy is the use of government spending and tax assessments to impact the economy.…

Q: If you voted for your committees to increase overall spending under your jurisdiction, resulting in…

A: National debt in year N = National debt in year (N - 1) + Budget deficit in year N (- Budget surplus…

Q: How will the debt held by the public for the bottom line of  $17.7 affect our economy?

A: In an economy, debt held by the public refers to when the government owes money from the households…

Q: Find the primary deficit if the fiscal deficit is 52 and the interest payments are 12

A: Initially in the given question Fiscal deficit = 52 Interest payment = 12 We need to calculate the…

Q: The national debt when the federal government incurs a stays the same; surplus rises; surplus stays…

A: The National debt refers to the total amount of borrowing that is incurred by the government of any…

Q: How budget deficits and national debt are defined?

A: The budget deficits of government are a difference between the total spending of government and the…

Q: How can the government utilize the instruments within a fiscal policy to stimulate economic activity…

A: The fiscal policy involves use of different tools to influence the aggregate demand in the economy.…

Q: Assume the national debt is $18 trillion and the inflation rate is 2%. The deficit is $500 billion.…

A: Given the national debt = $18 trillion Inflation rate = 2% Deficit = $500 billion

Q: ________________________ making a series of future expenditures without simultaneously committing to…

A: When the expenditures are more than the revenues, the individual or the economy has to borrow funds…

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…

Q: Explain the Economic Concepts of the Fiscal Policy : 1. inception   2. tools   3. goals

A: 1. Fiscal policy can be used by the government in order to stabilize the economy. Primarily in…

Q: Debt is    the same as the deficit.   good if it increases productivity more than the debt…

A: Debt is the term for the government borrowings accumulated over a period of time. Government…