The budget deficit is the amount by which government spending exceeds revenue in a given year. The national debt is the total amount of money the government owes. The budget deficit contributes to the national debt when the government borrows money to cover the shortfall.
Describe the relationship between demand-side economics and the federal budget deficit.
national debt
The deficit only includes shortfalls in the budget for the current fiscal year.
it's very poopy
Government deficit reduces public savings (=saving of the government). Yet, the government can decide to finance the deficit by private savings (bonds, credit, etc). In this case, a part of national savings can be used to finance the gov. budget deficit. But this is not by definition, it is the action of the govenment.
Describe the relationship between demand-side economics and the federal budget deficit.
Budget deficit is how much we spend per year over what we take in from taxes. National debt is the total amount the nation owes (the deficits added together).
deficit spending.
The debt increases.
national debt
The deficit only includes shortfalls in the budget for the current fiscal year.
deficit. -source: e2020
it's very poopy
it's very poopy
The national debt.
Government deficit reduces public savings (=saving of the government). Yet, the government can decide to finance the deficit by private savings (bonds, credit, etc). In this case, a part of national savings can be used to finance the gov. budget deficit. But this is not by definition, it is the action of the govenment.
A budget deficit can lead to more borrowing thereby impacting on the national debt