When the Federal government spends more than it takes in, deficit is the result.

Question

When the Federal government spends more than it takes in, deficit is the result. If deficits continue to occur year after year the government goes into debt. This is called National Debt. There are two basic ways to deal with debt—increase income or decrease spending.:

Is fiscal policy responsible for the National Debt?

Should the debt be reduced by increasing taxes or limiting spending?

Should it be a requirement that the Federal Budget be balanced each year?

If a balanced budget were required, would there be any acceptable exceptions?

Explanation / Answer

yes fiscal policy is responsible for national debt.

yes debt should be reduced by increasing taxes and reducing unnecessary spending

no it is not any requirement.

No special expectations can be accepted from balanced budget as it will only invoke investors morale and boost up it.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.