ECONOMICS
FISCAL POLICY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
That debt is the total amount of money a government has borrowed
|
|
|
That debt is the the amount by which a government’s expenditures exceed revenues
|
|
|
That debit is how you use your card to pay for items
|
|
|
Deficit is when you have more money than you are spending
|
Detailed explanation-1: -The main difference between deficit and debt is that deficit is the amount by which expenditure exceeds revenue, whereas debt is the total amount of money owed. Deficit and debts are two interrelated concepts. Deficits often lead to debts.
Detailed explanation-2: -The debt is the total amount of money the U.S. government owes. It represents the accumulation of past deficits, minus surpluses. Debt is like the balance on your credit card statement, which shows the total amount you have accrued over time.
Detailed explanation-3: -A government’s budget deficit causes debt to increase; debt requires a government to pay back more than it has borrowed; the deficit is the amount a government spends above what it brings in.
Detailed explanation-4: -the amount of money owed by a government to lenders at a particular time: Income tax rates are low, but government debt is at its highest level ever.
Detailed explanation-5: -To pay for a deficit, the federal government borrows money by selling Treasury bonds, bills, and other securities. The national debt is the accumulation of this borrowing along with associated interest owed to the investors who purchased these securities.