Question

In: Economics

1. How large is the current U.S. budget deficit and how has it changed over the...

1. How large is the current U.S. budget deficit and how has it changed over the last few years?
2. What is the total amount of U.S. debt and how has this changed in the last few years? Who holds this debt?
3. How does the current administration propose reducing the national debt? Do you think this plan is economically sound and achievable?
4. What are the potential economic consequences (short and long run) of large budget deficits/debt?
5. How have recent spending cuts impacted the economy?
6. What additional/different spending cuts would you recommend and why?

Solutions

Expert Solution

Budget deficit is defines as the excess expenditure over Revenue from both current and capital account .

Some economists believe that budget deficit are highly Dengerous for economy while some economist believe that controlled budget deficit are helpful in stimulation of growth in economy

1) :- in 2008 U. S budget was$459 billion but at the current time 2019 U.S BUDGET deficit reached $1 trillion . It rose $1.4 trillion And decline until 2015 and after that US deficit budget again started rising.

2) :--THE U.S debt taken by the federal government and it is equal to the $ 22 trillion and it is continuously rising. The debt held by federal government was equal to $ 10 trillion in 2008.

3) :- under us new government named Donald Trump US is disaster failed to reduce debt of country Or nation . For fulfillment of debt Donald cut down the government social security benefit plan . But according to sources and also economist doesn't give thumbs up for his plan .according to them it is not economically sound and viable it increase income inequality so government should not cut off them, for fulfillment of his national debt government should Cut down it's military spending.

4) :- in Short run high national debt will lead high interest rates but in Long run it will be reason of inflation .

5) :- transfer payments are one sides Trasection. it doesn't help in growth of economy so additional And over expenditure on national income should be cut down in order to reduce budget deficit . And for economy growth and reduction in budget deficit government should invest in infrastructure.

Rahul Sunny answered 1 month ago
Next > < Previous

Related Solutions

Suppose the U.S. government announces that it will bring the federal budget deficit to zero, over...
Suppose the U.S. government announces that it will bring the federal budget deficit to zero, over the next ten years, with no change in tax rates. Describe the effects of such a policy according to the three business cycle models, assuming that the policy is fully credible) Suppose the U.S. government announces that it will bring the federal budget deficit to zero, over the next ten years, with no change in tax rates. Describe the effects of such a policy...
Suppose the U.S. government announces that it will bring the federal budget deficit to zero, over...
Suppose the U.S. government announces that it will bring the federal budget deficit to zero, over the next ten years, with no change in tax rates. Describe the effects of such a policy according to the three business cycle models, assuming that the policy is fully credible
Suppose the U.S. government announces that it will bring the federal budget deficit to zero, over...
Suppose the U.S. government announces that it will bring the federal budget deficit to zero, over the next ten years, with no change in tax rates. Describe the effects of such a policy according to the three business cycle models, assuming that the policy is fully credible
The U.S. has run a budget deficit every year in recent memory. What is a budget...
The U.S. has run a budget deficit every year in recent memory. What is a budget deficit, and what are the implications of a budget deficit? Why might policies intending to reduce the budget deficit actually increase it?
What is the proposed Budget deficit for 2018? Why is the deficit currently so large and...
What is the proposed Budget deficit for 2018? Why is the deficit currently so large and should the government be more focused on a balanced budget? i)    As a Keynesian economist, defend the use of this deficit spending to help the economy. Use the AD/AS model in your answer. ii)    As a Classical economist explain using the “crowding out” theory why you are opposed to this deficit spending. Use graphical support in your answer.
The chapter notes that the rise in the U.S. trade deficit during the 1980s was due largely to the rise in the U.S. budget deficit.
The chapter notes that the rise in the U.S. trade deficit during the 1980s was due largely to the rise in the U.S. budget deficit. On the other hand, some in the popular press have claimed that the increased trade deficit resulted from decline in the quality of U.S. products relative to foreign products. Assume that U.S. products did decline in relative quality during the 1980s. This caused net exports at any given exchange rate to_______. Indicate the effect of this shift in...
According to the open-economy macro model, if the budget deficit of the U.S. increases then U.S....
According to the open-economy macro model, if the budget deficit of the U.S. increases then U.S. interest rates increase, U.S. domestic investment increases, NCO decreases and the U.S imports decrease because the U.S. dollar appreciates. Select one: True False In the market for foreign currency exchange, the amount of U.S. net exports desired at each real exchange rate represents the quantity of U.S. dollars demanded for the purpose of buying U.S. goods and services by foreign residents. Select one: True...
What is the proposed Budget deficit for Canada 2018? Why is the deficit currently so large...
What is the proposed Budget deficit for Canada 2018? Why is the deficit currently so large and should the government be more focused on a balanced budget? i)    As a Keynesian economist, defend the use of this deficit spending to help the economy. Use the AD/AS model in your answer. ii)    As a Classical economist explain using the “crowding out” theory why you are opposed to this deficit spending. Use graphical support in your answer.
The U.S. is a large economy with a trade deficit. Suppose the U.S. federal government increases...
The U.S. is a large economy with a trade deficit. Suppose the U.S. federal government increases income tax. How will this policy affects the U.S. saving, investment, real interest rate, and capital flows? Is it possible to prevent changes due to this tax policy? If yes, how? Explain reasoning.
What is the difference between the trade and budget deficit? How might an extended budget deficit...
What is the difference between the trade and budget deficit? How might an extended budget deficit lead to lower economic growth?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT