Chapter 16: Problem 8
Debt has a certain self-reinforcing quality to it. There is one category of government spending that automatically increases along with the federal debt. What is it?
Chapter 16: Problem 8
Debt has a certain self-reinforcing quality to it. There is one category of government spending that automatically increases along with the federal debt. What is it?
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Get started for freeWhen governments run budget deficits, how do they make up the differences between tax revenue and spending?
Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending by the University of Illinois is not fiscal policy? Why is a cut in the payroll tax fiscal policy whereas a cut in a state income tax is not fiscal policy?
What is the difference between discretionary fiscal policy and automatic stabilizers?
What is the difference between a progressive tax, a proportional tax, and a regressive tax?
What is the main reason for employing expansionary fiscal policy during a recession?
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