Purchase Solution

Federal Budet and Federal Debt

Not what you're looking for?

Ask Custom Question

Why does the budget require a forecast to the economy? Under what circumstances would actual government spending and tax revenue fail to match the budget as approved?

Federal Debt
what has happened to the federal debt since 2008 as measured relative to GDP?

Fiscal Policy:
In the current chapter, it shows that increased government purchases with taxes held constant, can eliminate a recessionary gap. How could a tax cut achieve the same result?

Purchase this Solution
Solution Summary

The expert determines why a budget requires a forecast to the economy. Under what circumstances would an actual government spending and tax revenues fail to match the budget as approved. The response addresses the query is posted in 439 words with APA References.

Solution Preview

The response addresses the query is posted in 439 words with APA References
// For the purpose of Undertaking the country's expenses in the most effective and proficient manner, the government of the country is required to make a specific budget. In this regard, the presented discussion is focused on the factors which are required for framing a budget in the most effective manner. Moreover, the paper also focused on trends of federal debts since 2008//
Answer 1: Forecast of future performance of the economy essentially implies, the forecast of revenue and expenditure of that economy, and the budget is based on the analysis of those revenues and expenditures. The relationship between the economy and budget is such that they influence each other as the declarations in the budget ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
Recent Feedback
  • "Thank You so much! "
  • "Always provide great help, I highly recommend Mr. Sharma over others, thanks again. "
  • "great job. I will need another help from you. "
  • "first class!"
  • "Thank you for your great notes. Will you be willing to help me with one more assignment? "
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Federal Debt

    So, the relationship between federal debt and annual yearly surplus or deficit is that federal debt decreases surpluses and increases federal debts.

  • Gross Federal Debt

    197229 Gross Federal Debt Is it possible for the gross federal debt to rise in dollar terms but decline as a percentage of GDP? Explain.

  • Fair Debt Collection and Federal Food, Drug, Cosmetic Act

    542635 Fair Debt Collection Practice Act and Federal Food, Drug, and Cosmetic Act How does the Fair Debt Collection Practices Act benefit consumers? Why was the Federal Food, Drug, and Cosmetic Act passed?

  • The Federal Reserve Bank controls the money supply and inter

    The only thing that they did, and that the Federal Reserve did, was to raise the level of debt spending, which gives more leeway of debt that can be used, until the debt ceiling is reached.

  • Deficit spending, debt and interest expense

    500750 Deficit spending, debt and interest expense 1. Suppose the federal government balanced the budget and no longer ran a deficit. Despite this action, interest on the federal debt is still substantial.

  • Federal Debt

    46377 Does the Federal Debt Matter? Does the Federal Debt Matter?

  • The Federal Reserve Bank controls the money supply and inter

    Instead of finding ways to initiate policies that would lower the country's debt, the federal reserve allowed for the government to incur more debt by raising the national debt limit.

  • federal debt

    144056 Federal Debt Statement Importance What's wrong with the following statement?

  • Federal Income Tax Structure Deciding Debt/Equity Financing

    If the federal tax increases than the cost of debt will get reduced and firm will favor more of debt. On the other hand there is no tax shield for equity. Thus tax structure affects the cost of capital in a significant manner.

View More Related Solutions