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Spending reductions across the board (not just "discretionary" spending) and a balanced budget amendment to the Constitution.

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Q: What do Republicans want in return for a debt ceiling increase?
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What if you leave for India from US with a credit card debt and then return after 5 years?

You will have to pay the debt + interest on your return to the US assuming the debt collectors have not chased you down in India already.


What are the advantages and disadvantages of financial leverage?

A major advantage is optimization of shareholders' wealth through mix of debt and equity, taking advantage of the U.S. tax system which favors debt financing by making interest deductible from income when calculating the company's federal tax liability. Low cost debt, especially when interest is low, would increase the return of equity relative to the return of assets. A disadvantage would be if the debt becomes too costly, it reduces the return of equity below the return of assets. Companies that are highly leverage in this case might find it difficult to make payments on their debt in times of trouble and also difficult to obtain additional financing from lenders.


Difference between retrun on equity and return on capital employed?

return on capital employed (ROCE) is net income/(debt&equity) whereas return on equity is income/equity (without debt).


What are the possible ways to increase debt-equity ratio?

The debt-to-equity ratio is a very simply calculation. Just divide a company's outstanding debt at a given date (usually quarter-end or year-end) by the company's equity on that same date. So, to increase this ratio, you would need to either increase the debt balance (i.e. borrow more) or decrease the equity balance (i.e. pay a dividend). Keep in mind, while increasing the debt-to-equity ratio will increase the ROE (return on equity) for a company, it also increases risk. Additionally, most banks include covenants in their loans that limit the debt-to-equity ratio for their customers (thereby making certain that the company has an equity "cushion" should an economic downturn occur).


What are two ways the debt-to-GDP ratio increase?

debt increases and GDP decreases.

Related questions

How many times did Ronald Reagan increase the debt ceiling?

Reagan raised the dept ceiling 18 times.


When was the debt ceiling last raised?

At the time of this writing (July, 2011), the most recent increase in the U.S. debt ceiling (to $14.3 trillion) was passed by Congress and signed into law on February 12, 2010.


What is a debt ceiling?

Debt ceiling is the limit on how much money the US Federal government can owe.


What president did not raise the debt ceiling?

The President cannot raise the debt ceiling. It is set by Congress.


How many times has the debt ceiling been raised since the inception of the debt ceiling?

102 times


What president raised the debt ceiling most?

The President cannot raise the debt ceiling. It is set by Congress.


Can you give me a sentence debt ceiling?

A debt ceiling can be described as the maximum limit that company, organization, or government agency can afford to incur debt. Example sentence: My personal debt ceiling is around a thousand dollars.


How many times has Obama raised the national debt ceiling?

The President cannot raise the debt ceiling. Only Congress can do that.


What is the United States debt ceiling?

The United States debt ceiling is a debate about government spending and debt. It discusses putting limits on the amount of debt the government can be in at any time and how much money the government can spend.


How many times was the debt ceiling raised under reagen?

The National Debt Ceiling was raised 18 times while Reagan was president.


Why does the United States have a debt ceiling?

"The United States has a debt ceiling, so that we as a nation, together with our leaders, can make an attempt to hold ourselves accountable in terms of our fiscal responsibility. The debt ceiling is also in conflict with 14th Amendment of the U.S. Constitution."


Why would the cost of debt increase if the risk-free rate increase?

The rate of return on a security, in this case the debt, is defined by rd = rRF + Liquidity Premium + Maturity Risk Premium + Default Risk Premium Thus increasing the risk free rate (rRf) should increase the cost of debt. Hopefully that answers your question...