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Why are entitlements and interest on the national debt considered fixed spending?
Wiki User
∙ 12y ago
Because there is no meaningful method of removing these costs. Interest on any loan is a fix expense. Salaries, which is basically what entitlements are, are also fixed expenses.
Wiki User
∙ 12y ago
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Why is it difficult for the federal government to increase or decrease spending?
Because two thirds of all government spending is on entitlements which the government connot easily alter. (by Solomon Zelman)
What does crowding out mean?
Increased government spending results in higher interest rates which puts downward pressure on investment spending.
Which is most likely to be affected by changes in the rate of interest?
investment spending
Working at McDonald's is considered as?
Business spending.
Which of the following is an example of mandatory spending?
Mandatory spending example would be buying groceries. Anything that is a NEED and not a WANT is considered mandatory spending
What makes up the largest portion of uncontrollable spending in the national budget?
The largest portion of uncontrollable spending in the federal budget is the spending that Congress approves.
What are the differences between entitlements mandatory spending and discretionary spending?
Mandatory spending is required by law and the other is not.
Most federal mandatory spending is spent on?
Most federal mandatory spending is spent on entitlements.
How does entitlements affect the range of discretionary spending by congress?
They call Harrison Barnes, a.k.a. black falcon, in for help.
Why is it difficult for the federal government to increase or decrease spending?
Because two thirds of all government spending is on entitlements which the government connot easily alter. (by Solomon Zelman)
When you use a credit card you are doing what?
Spending with interest
The total amount that a nation's government owes is called?
Debt. The amount the government spends, above and beyond incoming revenue is called a deficit. The accumulated annual deficit spending plus interest is the debt.
This national budget is an example of?
deficit spending.
In 1916 thhe US voted an increase in spending for national what?
National Defense
How does deficit spending impact national debt?
Deficit spending is spending money raised by borrowing. It is used by governments to stimulate their economy during times of depression or economic slow-down. Unless the borrowing is repaid, deficit spending will increase the national debt.
What do federal taxes pay for?
The four largest expenditures are Defense spending, Medicare, Social Security, and Interest payments on the national debt. These account for over two thirds of the entire federal budget.
What does crowding out mean?
Increased government spending results in higher interest rates which puts downward pressure on investment spending.
