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When the government runs a budget deficit what must it eventually do in order to pay back its debt?
Wiki User
∙ 7y ago
Have a budget surplus
Wiki User
∙ 7y ago
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Which if the following is an example of exspansionary fiscal policy?
the government cuts taxes
What is example of a fiscal policy?
There are unlimited examples. It only depends upon the imagination of the politics:A reduction (or an increase) on income tax.An extension in the unemployment benefits.A check for mums when they have a baby.Increasing taxes to pay for greater military spending.Raising taxes in order to cover a budget deficit.
Function of fiscal policy?
Fiscal policy is the government using its tools to influence the welfare of the economy. It does this by either government spending or taxation. It is used when trying to manipulate the macroeconomic welfare of the economy. It can practice expansionary policy in which the government expenditures are greater than the taxes it receives. The government will have a budget deficit. The government can do this by increasing government spending or decreasing taxation, which increases the amount of money to households. It can also practice contractionary policy in which the government expenditures are less than the taxes it receives. The government will have a budget surplus. The government can do this by decreasing government expenditure or increase taxation, which decreases the amount of money to households. These tools are used when the government or administration feels like it should step in to either decrease economic activity or increase economic activity. It would want to decrease economic activity in order to decrease inflation. It would want to increase economic activity in order to avoid decreasing aggregate demand, or aggregate economic activity by households. These policies essentially force people to work and force businesses to hire. This is the situation the world is currently in, where economic activity, transactions between businesses and households is stagnant. This leads to huge numbers in unemployment causing a gap in aggregate demand (no one is able to buy anything because they don't have a job to afford things), then firms cannot produce more because no one is buying anything. The logic is when all else fails the government needs to step in to spur economic activity in order to avoid a recession or depression.
Why does the government want to encourage exports?
One possible reason may be if the country has a deficit balance of payment. This means that it imports more than it exports and as a consequences, the exchange rate depreciates (the value of the country's currency falls compared to another currency). In order to have an exchange rate appreciation, an equality between imports and exports is needed and so, the government encourages exports.
The government might enact a price ceiling in order to accomplish what?
The government may impose a price ceiling in order to increase supply.
When the government runs a budget deficit what must in eventually do in order to pay back its debt?
have a budget surplus
Order to make up for a budget deficit the government can do what (Apex)?
Issue bonds
Which if the following is an example of exspansionary fiscal policy?
the government cuts taxes
When the government runs a budget deduct, what must it eventually do in order to pay back it’s bdebt?
G
What was the Production Budget for The Order?
The Production Budget for The Order was $35,000,000.
What support is the government giving to job creation?
The Federal Government is printing trillions of Dollars and expanding the Federal Government in order to meet the needs of an expanding government. Eventually everyone will work for the Federal Government.
Government sets smaller goals in order for the larger goals of the public agenda to eventually be reached?
true
In order to finance a war the government prints a great deal?
In order to finance a war, the government prints a great deal of money without gold to back it up. This will eventually lead to hyperinflation.
Is attention deficit order considered pre existing?
Yes.
What caused the uc budget cuts?
Governor Brown cut $500 million dollars from the UC in order to balance the state budget deficit, part of that (about $135 million) will be covered by tuition increase for students, and the rest will be attributed to cutbacks, layoffs, and other methods to save money. Here is a really great resource: http://ucregentlive.wordpress.com/
What was the budget for Harry Potter and the Order of the Phoenix?
The Production Budget for Harry Potter and the Order of the Phoenix was $150,000,000.
What was the Production Budget for Harry Potter and the Order of the Phoenix?
The Production Budget for Harry Potter and the Order of the Phoenix was $150,000,000.
