Purchase Solution

State government borrowing

Not what you're looking for?

Ask Custom Question

What is the difference between a state government borrowing to fund the construction of, say, a new school building adn borrowing to balance the current budget?

Describe the limits financial markets impose on state government borrowing. How are they different from the limits these same markets impose in Federal government borrowing?

Purchase this Solution

Solution Preview

The budget deficit in any given fiscal year is the difference between government's outlays (spending) and government's revenues (receipts). Government deficits are often financed by borrowing. The government does that by issuing bonds with varying maturities. These bonds are sold to the Fed or to the public directly (or through the Fed). When government bonds are sold in the market anyone could buy them; banks, financial institutions, pension funds, individuals, foreign individuals and foreign public and private institutions. The ...

Purchase this Solution

Free BrainMass Quizzes
Basics of Economics

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

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

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

Elementary Microeconomics

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

Economics, Basic Concepts, Demand-Supply-Equilibrium

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