course hero: increasing public debt can lead to which of the following?

Is the increasing public debt a burden on future generations?

Jul 11, 2016 · 48. One of the potential consequences of the public debt is that it may: A. Make income distribution more equitable B. Increase the debt burden of foreign creditors C. Lead to additional future taxes that reduce economic incentives D. Decrease interest rates and increase investment spending

What are the effects of a higher deficit on public debt?

Jul 02, 2016 · Chapter 14 Learning Objectives 1.Define the following terms: Government budget deficit: an excess of government spending over government revenues during a given period of time Balanced budget: a situation in which the government’s spending is exactly equal to the total taxes and other revenues it collects during a given period of time. Government budget surplus: …

How has the net public debt increased since the year 2000?

Feb 16, 2017 · Running Head: UNIT 6 HOMEWORK 1 Chapter 11 1). Determine whether each of the following, other factors held constant, would lead to an increase, a decrease, or no change in the level of the real GDP demanded: a) A decrease in government purchases- would lead to increase in the level of GDP demand, especially during a recovery period. b) An increase in net …

Do some economists believe that deficit spending can impose a burden?

Jul 23, 2017 · A ) Future generations will always be worse off because they will have to pay off the public debt . B ) Increased consumption today will lead to increases in the capital stock in the future . C ) Future generations may be better off if the rate of return on the borrowed funds is higher than the interest rate paid to foreign residents .

Does a higher deficit create a higher public debt?

Thus, a higher deficit creates a higher public debt.

How much was the national debt in 2004?

Meanwhile, the national debt was 40.0 trillion in 2004. In 2005 the federal government ran a budget deficit of 4.0 ​trillion, which was totally financed by borrowing. Given this set of circumstances the national debt as a percentage of real GDP has. A. increased.

Can foreign dollar holders hold more domestic government bonds?

Other things being​ equal, foreign dollar holders can be induced to hold more domestic government bonds used to finance domestic government deficits only if the domestic interest rate rises. Net public debt as a percentage of GDP increased sharply from 2009 to 2014 before leveling off.