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Is there a potential problem if government continually finance goods and service with borrowed money?
If the government is not making profit with these goods and services, which they're most likely not, they will not have the sufficient income to pay back the loan.
If you have a $100 electric bill, so you take out a loan to pay for your electricity, now you owe the bank (or loan agency) $100. You're not paying the bill; just changing who you owe it to. Not to mention, the loan agency will charge interest, so now you owe $150 for a $100 electric bill.
The only difference is that the government does this on a larger scale, and it affects all of us.
What else can I help you with?
In recent decades the Federal Government has borrowed money mostly to do what?
Finance special expensive projects.
Borrowing allows congress to?
The framers of the Constitution allows for the government to borrow money in order to finance public projects. An example of this would be the money borrowed for the Louisiana purchase.
How does the government acquire borrowed funds?
The government acquires borrowed funds primarily by issuing debt securities, such as Treasury bonds, bills, and notes. Investors, including individuals, corporations, and foreign governments, purchase these securities, effectively lending money to the government in exchange for interest payments and the promise of repayment at maturity. This process allows the government to finance its operations, fund public projects, and manage budget deficits without raising taxes immediately.
A default in personal finance is called what?
Failure to repay borrowed money in a timely manner is called.
The Changing Role of Government and Public finance?
how can effect the changing role of the government to public finance
What is the finance charge that you would pay if you borrowed 100 for 18 months at an APR of 9 percent?
13.5
In what was the second continental congress serve as the first national government?
The second continental congress directed the war effort, borrowed money to finance the war, coined money, bought supplies, and made treaties with other governments
What is public finance law?
Public Finance is the study of Government activities and how the Government finance those activities.
Meaning and scope of public finance?
Essentially public finance is "finance deals with the government". "The scope of public finance is extends to government. expenditures, government revenue, public debt, and financial management."
Who is the Minister of Finance for Bosnia and Herzegovina's Federal Government?
Ante Krajina is the Minister of Finance for Bosnia and Herzegovina's Federal Government.
Who is the Minister of Finance for Bosnia and Herzegovina's National Government?
Nikola Spiric is the Minister of Finance for Bosnia and Herzegovina's National Government.
What is government bonding in personal finance?
Finance is the practice of financial decision making
