Economy
What is
GOV runs deficits during recession
GOV have surplus during expansion
What is the debt ceiling?
What is the maximum amount of money that the government is authorized to borrow?
Which U.S. government agency is responsible for reporting the national debt?
What is the U.S. Department of the Treasury?
What is the current national debt of the U.S.?
What is 34 trillion?
How can budget deficits stimulate growth in economy (short-term)?
a)Reducing government intervention
b)Increasing government spending
c)It doesn’t, it affects it negatively
What is ....b) Increasing government spending
Budget deficits stimulate economic growth by increasing the aggregate demand. This eventually means more jobs and production → more spending in economy.
Under the constitution, raising the debt ceiling must be approved by...
What is Congress?
Persistent budget deficits can lead to this economic phenomenon, causing rising prices and a decrease in the purchasing power of money.
What is Inflation?
Which country does the U.S. owe the most to and by how much?
What is Japan at 1.1 trillion?
What happens to interest rates in budget deficits?
a) they increase
b) they decrease
c) they stay the same
What is ....a) they increase
When there is multiple competitors (the GOV and private-sectors) attempting to borrow money. Everybody wants the funds which makes the interest rate rise. GOV drives private-sectors out resulting in crowding them out.
How many times has the U.S. increased the debt ceiling since 1960?
This term describes a situation where the government spends more money than it receives in revenue over a specific period.
What is Deficit spending?
To avoid bankruptcy the government is most likely to increase what?
What are Taxes?
What does budget deficits do to inflation?
What is ...It causes inflation to rise. Because GOV fiscal policy causes stimulation in economy. But increase demand in this situation doesn’t lead to increase supply.
What is the primary reason for the existence of the debt ceiling?
What is to ensure that the government does not borrow excessively?
What economic theory suggests that deficit spending can be beneficial during times of economic recession to stimulate demand and growth?
What is Keynesian economics?
On Country A’s 1st fiscal year it spends $700, and it’s revenue is $300. On it’s 2nd fiscal year it spends $900, and its revenue is $500. What is it’s National debt?
What is.... Country A’s national debt: $800
What is the name of the long-term debt instrument issued by the U.S. Treasury with maturities ranging from 20 to 30 years, commonly used to finance government activities such as infrastructure spending?
What is a Treasury bond?
What happens if Congress fails to raise the debt ceiling before the government reaches its borrowing limit?
What is the risk of defaulting on its financial obligations?
What is the name of the agreement or legislation passed by Congress to limit government spending and reduce the budget deficit?
What is a Budget control act?
Refer to Basic’s $400 question. Find out the National debt..If on Country A’s 3rd fiscal year, the GOV spends $500 and it’s revenue is $650. And it’s 4th fiscal year the GOV spends $750, and its revenue is $250.
Country A’s national debt is now $1,150