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Questions and Answers
What does the government budget impact?
What does the government budget impact?
- Interest rates and consumer spending
- Unemployment and stock market
- Inflation and economic growth (correct)
- Government debt and international trade
How can a government budget deficit affect the economy?
How can a government budget deficit affect the economy?
- By stabilizing the currency exchange rates and lowering inflation
- By decreasing taxes and stimulating consumer spending
- By increasing interest rates and crowding out private investment (correct)
- By reducing government debt and promoting international trade
What is a potential consequence of a government budget surplus?
What is a potential consequence of a government budget surplus?
- Increased inflation and higher interest rates
- Reduced public investment and economic slowdown (correct)
- Expansion of government programs and job creation
- Strengthening of the currency and trade deficits
Which of the following is a potential consequence of a government budget deficit?
Which of the following is a potential consequence of a government budget deficit?
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How can a government budget surplus impact the economy?
How can a government budget surplus impact the economy?
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What effect can an expansionary fiscal policy have on the government budget?
What effect can an expansionary fiscal policy have on the government budget?
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