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The government prominently collects money in form of taxes and it spends money in many ways such as defense, government jobs, aid programs such as EBT, and etc.
Therefore when the government runs a budget deficit they are spending more than they collect, more than likely effecting the national savings.
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∙ 13y ago
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When the government runs a budget deficit it increases the what?
national debt
When the government runs a budget deficit what must it eventually do in order to pay back its debt?
Have a budget surplus
The federal government runs a budget deficit when its?
the govt spends more than they have
When the US government runs a budget deficit this action creates?
to protect national security an increase in the real exchange rate of the dollar
When a country runs a trade deficit it does so by?
Countries run trade deficits by selling assets to or borrowing from foreign countries. A trade deficit happens when a country has a negative balance of trade.
When the government runs a budget deficit it increases the what?
national debt
When the government runs a continual budget deficit what does it increase?
interest rate
When the government runs a budget deficit what must it eventually do in order to pay back its debt?
Have a budget surplus
The federal government runs a budget deficit when its?
the govt spends more than they have
When the government runs a budget deficit what must in eventually do in order to pay back its debt?
have a budget surplus
When the US government runs a budget deficit this action creates?
to protect national security an increase in the real exchange rate of the dollar
When a country runs a trade deficit it does so by?
Countries run trade deficits by selling assets to or borrowing from foreign countries. A trade deficit happens when a country has a negative balance of trade.
What is the national deficit?
A deficit is caused when the amount of revenue taken in by a government is less than it spends on its programs. The difference becomes a debt in the form of loans against future revenue, usually promissory notes and bonds. When a city or state is in deficit, it usually requires curtailing public services or reducing public employment. However, the national government is less restricted in its spending because a deficit is covered by borrowing (Treasury Bills and bonds are normally used to finance interim spending anyway). The total of these loans is called the National Debt, and most of it is actually owed to investors in the US. When the US imports more than it exports, the difference is called the "balance of payments" deficit, which is potentially more important because it represents debts to foreign countries (e.g. China). *The US, as with most nations, has the ability to "create" money in the form of currency, and can regulate its debt through control of the money supply. This is usually not a permanent solution because it can decrease the value of the dollar.
What is it called when the federal government makesmore money than it collects in a fiscal year it runs a budget?
A surplus.
When the government runs a budget deduct, what must it eventually do in order to pay back it’s bdebt?
G
What happens when a government also runs the press?
When the government also runs the press the news may become more like propaganda for the government. They will never report negatively on themselves.
What is the real burden of an increase in the public debt?
If the government runs into a deficit whatever the burden is will be passed on to the next generation. Public debt increases when the economy is in bad shape.
