Podcast
Questions and Answers
Which of the following best describes government deficits?
Which of the following best describes government deficits?
- The fluctuation of the debt-to-GDP ratio
- The accumulation of government debt over time
- The difference between government revenues and expenditures (correct)
- The borrowing of funds from the private sector
What is the main source of financing for government deficits?
What is the main source of financing for government deficits?
- Private pension and insurance fund portfolio investments (correct)
- Foreign investments
- Government savings
- Public sector borrowing
Why is it more likely for governments to have deficits than surpluses over long periods of time?
Why is it more likely for governments to have deficits than surpluses over long periods of time?
- Governments prioritize spending over saving
- Governments aim to stimulate the economy
- Governments face unexpected expenses (correct)
- Governments lack fiscal discipline
What historical events have had a major impact on the ratio of public debt to GDP for the United Kingdom?
What historical events have had a major impact on the ratio of public debt to GDP for the United Kingdom?
What was the effect of the credit crisis of 2008 on government debt in the United Kingdom and the United States?
What was the effect of the credit crisis of 2008 on government debt in the United Kingdom and the United States?
What was a concern in the financial markets in 2010 for some countries, such as Greece?
What was a concern in the financial markets in 2010 for some countries, such as Greece?
What impact did the fiscal expansion by governments during the financial crisis have on the general government debt-to-GDP ratio?
What impact did the fiscal expansion by governments during the financial crisis have on the general government debt-to-GDP ratio?
What was the change in central government debt in the United Kingdom between 2008 and 2009 according to the OECD?
What was the change in central government debt in the United Kingdom between 2008 and 2009 according to the OECD?
What was the change in central government debt in the United States between 2008 and 2009 according to the OECD?
What was the change in central government debt in the United States between 2008 and 2009 according to the OECD?
What factor has historically caused fluctuations in the ratio of public debt to GDP for the United Kingdom?
What factor has historically caused fluctuations in the ratio of public debt to GDP for the United Kingdom?
What is the effect of government borrowing on private sector investment?
What is the effect of government borrowing on private sector investment?
What is the impact of larger government demands on interest rates and private sector investing?
What is the impact of larger government demands on interest rates and private sector investing?
What is the distinction between long- and short-run effects of crowding out?
What is the distinction between long- and short-run effects of crowding out?
What is the impact of tax distortions over the short term?
What is the impact of tax distortions over the short term?
What is the potential impact of crowding out on capital accumulation in an economy?
What is the potential impact of crowding out on capital accumulation in an economy?
What is the relationship between government borrowing and interest rates?
What is the relationship between government borrowing and interest rates?
What is the impact of tax distortions over many years?
What is the impact of tax distortions over many years?
What is the potential impact of crowding out over short periods of time?
What is the potential impact of crowding out over short periods of time?
What is the impact of larger government demands on private sector investing over short periods of time?
What is the impact of larger government demands on private sector investing over short periods of time?
What is the impact of larger government demands on private sector investing over longer periods of time?
What is the impact of larger government demands on private sector investing over longer periods of time?
What is one potential indicator for potential insolvency of a country?
What is one potential indicator for potential insolvency of a country?
What concern arises when government spending is far in excess of revenues?
What concern arises when government spending is far in excess of revenues?
How much did government debt relative to GDP for the OECD countries overall rise from 2005 to 2015?
How much did government debt relative to GDP for the OECD countries overall rise from 2005 to 2015?
In Japan, how much did the ratio of government debt relative to GDP rise from 1995 to 2015?
In Japan, how much did the ratio of government debt relative to GDP rise from 1995 to 2015?
When does the debt ratio worsen even though the economy is growing?
When does the debt ratio worsen even though the economy is growing?
What happens to the real value of the outstanding debt if the overall price level rises?
What happens to the real value of the outstanding debt if the overall price level rises?
What may happen if investors lose confidence in a government's ability to honor its debts?
What may happen if investors lose confidence in a government's ability to honor its debts?
What is one argument against being concerned about national debt relative to GDP?
What is one argument against being concerned about national debt relative to GDP?
What may high levels of debt to GDP lead to?
What may high levels of debt to GDP lead to?
What may happen if markets lose confidence in a government?
What may happen if markets lose confidence in a government?
