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Public Debt
Because increased government spending or tax cuts cause higher government deficits, they also contribute to a rise in total planned expenditures and aggregate demand.

Tasks:
Explain how each of the following will affect the net public debt, other things being equal:

  • Previously, the government operated with a balanced budget; however, recently, there has been a sudden increase in federal tax collections.
  • The federal government had been operating with a very small annual budget deficit until three successive hurricanes hit the Atlantic Coast, and now government spending has risen substantially.
  • The Government National Mortgage Association, a federal government agency that purchases specific types of home mortgages, buys U.S. Treasury bonds from another government agency.

Remember to adhere to APA guidelines, standards, and formatting.

Submission Requirements:
Submit the analysis for grading in approximately two pages before the end of the week.

  • Format: Microsoft Word
  • Font: Arial, 12-point, double-spaced
    • 9 years ago
    • 15
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