The U.S. debt problem could be solved, but each solution comes with unintended consequences. For example, if government prints more money this may cause __________. If government raises taxes this may cause ___________. If government cuts spending this may ____________. And if government borrows more and more money this may cause ___________. Hyperinflation; deflation and employment; cause default on the debt; a stronger U.S. dollar. A deflationary spiral; GDP to fall; a debt jubilee; the need for China/IMF to bailout the U.S. Currency collapse; inflation; hurt the wealthy; narrowing of Exter’s Pyramid and stability. An inflationary spiral; stagflation; hurt the elderly, disabled and the poor; a debt crisis.
The U.S. debt problem could be solved, but each solution comes with unintended consequences. For example, if government prints more money this may cause __________. If government raises taxes this may cause ___________. If government cuts spending this may ____________. And if government borrows more and more money this may cause ___________. Hyperinflation; deflation and employment; cause default on the debt; a stronger U.S. dollar. A deflationary spiral; GDP to fall; a debt jubilee; the need for China/IMF to bailout the U.S. Currency collapse; inflation; hurt the wealthy; narrowing of Exter’s Pyramid and stability. An inflationary spiral; stagflation; hurt the elderly, disabled and the poor; a debt crisis.
Chapter17: Federal Deficits, Surpluses, And The National Debt
Section: Chapter Questions
Problem 7SQP
Related questions
Question
- The U.S. debt problem could be solved, but each solution comes with unintended consequences. For example, if government prints more money this may cause __________. If government raises taxes this may cause ___________. If government cuts spending this may ____________. And if government borrows more and more money this may cause ___________.
- Hyperinflation; deflation and employment; cause default on the debt; a stronger U.S. dollar.
- A deflationary spiral;
GDP to fall; a debt jubilee; the need for China/IMF to bailout the U.S. - Currency collapse; inflation; hurt the wealthy; narrowing of Exter’s Pyramid and stability.
- An inflationary spiral; stagflation; hurt the elderly, disabled and the poor; a debt crisis.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning