ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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when the government spends more than it collects in taxes and borrows to cover the difference.
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the sum of all of the money owed by the government.
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a very, very, very bad thing to have in government
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okay to have.
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Detailed explanation-1: -deficit financing, practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds.
Detailed explanation-2: -A deficit occurs when the federal government’s spending exceeds its revenues. The federal government has spent $460 billion more than it has collected in fiscal year (FY) 2023, resulting in a national deficit. $ 4.
Detailed explanation-3: -When a government borrows money, its debt increases. Whenever a government runs a budget deficit, it adds to its long-term debt. For example, suppose the government of Kashyyyk has a $200 million budget deficit one year, so it borrows money to pay for its budget deficit.
Detailed explanation-4: -A budget deficit occurs when expenditures exceed revenue and is the term commonly used to refer to government spending and national debt. Surplus is the amount of an asset or resource that exceeds the portion that is utilized. Read about the reasons for surplus and its economic impact.