Explanation: A regressive tax is commonly a tax that is applied equally, which means it affects lower-income individuals more, with regressive tax the rate of tax decrease as the income rise.

Which best describes how expansionary policies can facilitate economic growth? They increase disposable income.

Answer Expert Verified. I believe the answer is: They increase disposable income. Expansionary policies is being done by expanding money supply and cutting the income tax that must be paid by the citizens.

How are progressive taxes and regressive taxes similar? a. Both charge high-income individuals more. Both are considered flat taxes.

Progressive taxes are those tax amounts that increase when the payer’s income also increases. The similarity of these two taxes is that they are both determined based on a person’s income. Thus, the answer is the third choice.

As per the question, the aspect of fiscal policy reflected by the given diagram would be ‘government’s spending or expenditure’ in order to boost the economy. Such expenditures are incurred by the government during recession to give people work and increase the supply of money in the market.

Answer Expert Verified. EXPLANATION: The Sales Tax is a tax which is imposed by the government on the sale of products and services. This tax is both Indirect and Regressive in nature.

When the government spends money or makes a payment, it is called a GOVERNMENT EXPENDITURE. This includes all the governments consumption, transfer payments as well as investments. Hope this answer helps.

Clearly, the biggest deficits as a share of GDP during this time were incurred to finance World War II. Deficits were also large during the 1930s, the 1980s, the early 1990s, and most recently during the recession of 2008–2009.

The federal government ran a deficit of $3.1 trillion in fiscal year 2020, more than triple the deficit for fiscal year 2019. This year’s deficit amounted to 15.2% of GDP, the greatest deficit as a share of the economy since 1945. Revenues in FY2020 fell 1% from last year, while outlays surged 47%.

$3.7 trillion

With deficits rising more than GDP, we estimate deficits will total 10.4 percent of GDP in FY2021, up from 8.6 percent in CBO’s prior estimate….Estimated Change in 2021 Deficit From CBO Projection.

(See Crowding out below.) Deficit spending may, however, be consistent with public debt remaining stable as a proportion of GDP, depending on the level of GDP growth. The opposite of a budget deficit is a budget surplus; in this case, tax revenues exceed government purchases and transfer payments.

$587 billion

The last surplus for the federal government was in 2001. A balanced budget occurs when the amount the government spends equals the amount the government collects. The federal government has run deficits for the last 19 years.

On January 8, 1835, president Andrew Jackson paid off the entire national debt, the only time in U.S. history that has been accomplished. The Panic of 1837 then followed.

If the U.S. paid off its debt there would be no more U.S. Treasury bonds in the world. The U.S. borrows money by selling bonds. So the end of debt would mean the end of Treasury bonds. But the U.S. has been issuing bonds for so long, and the bonds are seen as so safe, that much of the world has come to depend on them.

Japan

1 Foreign governments hold about a third of the public debt, while the rest is owned by U.S. banks and investors, the Federal Reserve, state and local governments, mutual funds, and pensions funds, insurance companies, and savings bonds.

In other words, countries worldwide owed more than 6% of world GDP in debt to China as of 2017.

Foreign investors hold roughly 40% of the US’ debt

Saudi Arabia

But its debt load, already high for an emerging market, is even higher due to the coronavirus. As an emerging market, which China likes to remind the world that it still is, China is the most indebted. When you don’t own at least one of the world’s most used currencies, then it becomes harder to finance those debts.

There is only one “debt-free” country as per the IMF database. For many countries, the unusually low national debt could be due to failing to report actual figures to the IMF.

United States

So why can’t governments just print money in normal times to pay for their policies? The short answer is inflation. Historically, when countries have simply printed money it leads to periods of rising prices — there’s too many resources chasing too few goods.

The states with the least amount of debt are an interesting mix of states geographically. Mountain states, such as Idaho, Montana, Utah and Wyoming made the top-10 list, as did upper Midwest states like Nebraska, North Dakota and South Dakota. Alaska takes the No. 1 spot, with a tiny debt ratio of only 14.2%.

California

Alaska is the top state for fiscal stability. It’s followed by South Dakota, Tennessee, Idaho and Utah to round out the top five. Half of the 10 states with the best fiscal stability also rank among the top 10 Best States overall. Learn more about the Best States for fiscal stability below.

Federal debt is at its highest point in American history. Raising taxes and cutting spending are the two most popular solutions for reducing debt. Driving up the GDP can help reduce the debt-to-GDP ratio. Diverting spending from the military to other sectors can boost job growth and help the economy.