The best way for the federal government to attract investors toward purchasing bonds over other investment options offer high interest rates. Explanation: Interest is the amount that investors or lenders earn when they initiate a loan that the borrower in a specified amount of time repays.
Q. What is it called when the US government collects more money than it spends in a fiscal year?
The Deficit, the Debt, and the Debt Ceiling When the amount of money the government collects in taxes and other revenue in a given year is less than the amount it spends, the difference is called the deficit. If the government takes in more money than it spends, the excess is called a surplus.
Table of Contents
- Q. What is it called when the US government collects more money than it spends in a fiscal year?
- Q. What is a major argument against a constitutional amendment requiring a balanced budget?
- Q. Does the government help or hinder the economy?
- Q. What are some disadvantages of government involvement?
- Q. Should the government always aim for economic growth?
Q. What is a major argument against a constitutional amendment requiring a balanced budget?
What is one major argument against a constitutional amendment requiring a balanced budget? It would make it hard for the government to respond to rapid changes in the economy.
Q. Does the government help or hinder the economy?
The U.S. government’s role in the economy can be broken down into two basic sets of functions: it attempts to promote economic stability and growth, and it attempts to regulate and control the economy. The federal government regulates and controls the economy through numerous laws affecting economic activity.
Q. What are some disadvantages of government involvement?
Disadvantages of government intervention
- Government failure. Government failure is a term to describe how government intervention can cause its own problems.
- Lack of incentives.
- Political pressure groups.
- Less choice.
- Impact of personal freedom.
Q. Should the government always aim for economic growth?
Economic growth means an increase in real GDP – which means an increase in the value of national output/national expenditure. Economic growth is an important macro-economic objective because it enables increased living standards, improved tax revenues and helps to create new jobs.
