Podcast
Play an AI-generated podcast conversation about this lesson
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?
Signup and view all the answers
How can a government budget surplus impact the economy?
How can a government budget surplus impact the economy?
Signup and view all the answers
What effect can an expansionary fiscal policy have on the government budget?
What effect can an expansionary fiscal policy have on the government budget?
Signup and view all the answers
