Will a budget deficit be more expansionary if it is financed by borrowing from the Federal Reserve or from the general public?  Explain.

Q: What would be the value of interest payments if primary deficit is $27,000 million and the fiscal…

A: The data presented in the question is as follows:- Primary deficit = $27,000 million Fiscal deficit…

Q: What is the index of leading economic indicators, and how does it relate to discretionary fiscal…

A: A business cycle represents the periodic movement of the aggregate output of an economy in the…

Q: Why did the budget surpluses in 2000 and 2001 give way to a series of budget deficits beginning in…

A: In the 2000 and 2001 budget surplus was 2.5% and the cyclical adjusted budget surplus was 1% to the…

Q: In 2050, the government has collected $10,227 billion in revenues from taxes but has spent $10,584…

A: A budget deficit occurs when government spending is greater than government tax collection i.e.,…

Q: Suppose the US Federal Government decides to engage in deficit spending whereby it increases its…

A: A budget deficit may result in public sector debt, and also a rise in the national debt.

Q: How will a contractionary fiscal policy affect a budget deficit? A.) Debts will…

A: Budget deficit refers to the amount of expenditure of a government that surpasses/exceeds the total…

Q: Distinguish between deficit and debt.

A: Deficit refers to the outflow of money that is greater than the inflow of money. For example, a…

Q: Given the incentive of elected political officials to spend and their reluctance to tax, two-thirds…

A: According to the statement, the elected political candidates reluctance is to spend on the tax.…

Q: The most difficult approach to handling a budget deficit is to [increase income | liquidate…

A: Answer-

Q: explain why the government deficit rises as the economy contracts and why the government deficit…

A: The government budget refers to a fiscal or financial statement that includes all the receipts (or…

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's the difference between a structural and a passive budget deficit? What contributes to a…

A: Deficits occur when government expenditure is larger than the receives in the period of time.

Q: During the 1990s, the federal budget moved from a deficit to a surplus. What factors accounted for…

A: A budget surplus implies the government will have an extra fund and these funds will be used to pay…

Q: when is the most appropriate time economically speaking for the federal budget be in a deficit?

A: A budget deficit is a situation when government spending exceeds the government's total income. A…

Q: If the president and parliament agree on a policy to reduce the budget deficit by increasing taxes…

A: If the government deicides to adopt a contractionary fiscal policy by increasing the taxes,…

Q: The reason why fiscal policy should be in tune with monetary policy when the economy is in the…

A: Hey, thank you for the question. Since there are multiple questions posted, we will answer first…

Q: How will cuts in state budget spending affect federal expansionary policy?

A: Expansionary fiscal policy refers to an increase in the federal government purchases and or a…

Q: Distinguish between discretionary and nondiscretionary fiscal policy. What is the difference? What…

A: SUMMARY- Discretionary fiscal policy alludes to the policy drives taken up by the public authority…

Q: Describe how the federal deficit is a burden on the shoulders of future generations.

A: Answer: Introduction: Deficit or budget deficit refers to the excess of spending over revenue. In…

Q: What is the difference between expansionary and contractionary fiscal policy and what effects does…

A: Fiscal Policy: Fiscal policy is a part of an economic policy that is monitor by the government of…

Q: What is the difference between a budget deficit, a balanced budget, and a budget surplus?

A: The government budget refers to the financial statement that is prepared by the government that…

Q: Why might economists be quite concerned if the annual interest payments on the debt sharply…

A: The standard measure of value-added produced during a certain time by manufacturing goods and…

Q: What is the difference between debt and deficit? Explain why there is no time lag for automatic…

A: Deficit is the difference b/w the amount that is received and what is spent by the government of a…

Q: if the government budget deficit equals $240 billion and the money supply increases by $100 billion,…

A: The budget deficit is an excess of government spending over its revenue. To meet the deficit, the…

Q: How can a budget deficit be reduced?   Group of answer choices   Decreasing government spending…

A: Ans. A. Decreasing government spending and/or increasing taxes A budget deficit is a situation when…

Q: How is the Social Security system currently influencing the size of the budget deficit? If it is not…

A: The budget deficit creates the problem in the economy. When there is budget deficit, it will leads…

Q: What is the difference between the national debt and the deficit?

A: Debt and deficit are two of the most well-known terms in all of large scale money, and they're…

Q: (Chronic Deficits) Why has the federal budget been in deficit in all but 14 years since 1929?

A: When the expenditures are greater than what is earned, there exists a budget deficit in the economy.…

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: Parliament is debating the option of implementing a value added tax (vat) as a means to cut the…

A: The economics as a study is associated with the decision making phenomenon where the entities in the…

Q: As federal government borrows more money to finance its deficit, it may lead to crowding out.…

A: As the federal government borrows more money to finance its deficit, the supply of household savings…