Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

The government finances the budgetary deficit by A) from the public (through the sale of B) issued by the U.S. Treasury), or from other countries

The government finances the budgetary deficit by A) from the public (through the sale of B) issued by the U.S. Treasury), or from other countries (such as China), or from the Federal Reserve System (we'll get into that in the next module). People holding U.S. government Treasury Bills, Treausry notes and Treasury bonds are C) (lenders/borrowers - fill in the number from the word bank) to/from the federal government. The total amount owed by the federal government is known as the D) debt. Currently, about E) % (fill in whole number - no decimals or percentage sign) of this debt is held by foreigners or foreign governments. Not only must the government pay back this debt, but it also must pay F) while it holds the lenders money. In 2021 (the year i, the interest on the Zoom lecture on Fiscal Policy was made), this interest payment was G) $ billion (fill in whole number).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics For Engineers And Scientists

Authors: William Navidi

3rd Edition

9780073376332

Students also viewed these Economics questions