answersLogoWhite

0

The difference between government spending and borrowing is referred to as the government's budget balance or fiscal balance. When a government spends more than it earns in revenue, it runs a budget deficit, necessitating borrowing to cover the shortfall. Conversely, if it spends less than its revenue, it has a budget surplus, which can be used to pay down existing debt or save for future needs. The balance can provide insight into a government's fiscal health and economic strategy.

User Avatar

AnswerBot

3w ago

What else can I help you with?

Related Questions

An important difference between government spending during the Depression and during world war 2 was that?

A


Difference between central government and union government?

There is no difference between central and union government


What is the difference between government and government?

There is no difference. Government and government are the same thing.


How many times is the same dollar taxed?

As many as the politicians will let it ! I find it intersting that the budget deficit is a the difference between Government spending versus Government Income.... Don't you actually have to earn income?


What is the difference between governments and government's?

There is no difference. Government and government are the same thing.


What are the 4 components of total spending?

The four components of total spending in an economy are consumption, investment, government spending, and net exports. Consumption refers to household spending on goods and services. Investment includes business expenditures on capital goods and residential construction. Government spending encompasses public sector expenditures on goods and services, while net exports represent the difference between a country's exports and imports.


What is the link in twin deficits?

The twin deficits refer to the simultaneous occurrence of a budget deficit and a current account deficit in a country's economy. The link between them lies in the fact that a budget deficit, which occurs when government spending exceeds revenue, may lead to increased borrowing. This borrowing can fuel domestic demand, potentially resulting in higher imports and thus widening the current account deficit. Essentially, higher government spending can stimulate consumption and investment, leading to an imbalance in trade if domestic production does not keep pace.


What is the difference between a central government and a federal government?

There is no difference between a central government and a federal government. Both of those types of government do the same thing. The only difference is in the name.


What causes a difference between desired spending and income in the monetarist model in the Keynesian model?

In the monetarist model, a difference between desired spending and income is caused by either an excess demand for money (MD > MS) or an excess supply of money (MS > MD). An excess demand for money reduces desired spending, and an excess supply increases it. In the Keynesian model, changes in desired spending (particularly in desired investment spending) cause the difference.


What is the difference between Rwanda's government and Canada's government?

The difference between Canada's government and Rwanda's government is that Canada's is based on Democracy while Rwanda's government is based on Democracy and pride.


What is the relationship between interest rates and economic growth?

The relationship between interest rates and economic growth is that lower interest rates typically stimulate economic growth by encouraging borrowing and spending, while higher interest rates can slow down economic growth by making borrowing more expensive.


What is Republican and what is a?

Republican - The beliefes of a Republican is no abortian, Prolife (marridge between man and woman), less taxes, less government spending Demacrat - Marridge between man &woman, and homasexuals. More taxes, and more Government Spending.