Budget Deficit, economics homework help

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Economics

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Minimum 150 words. This is a discussion question, not a paper, per se. Cite all work.

a. What is the Budget Deficit? Is it dangerous?

b. Which was the budget deficit since 1950 (the Federal Reserve website is one place were you can find data)? You can also see the Congressional Budget Office website.

c. Do you expect Budget Surplus or Deficit in year 2017? Why?

d. The President has indicated that the Military expenses will be increased in 10% (around $ 50 billion) and that savings from other Government agencies will be reduced in the same amount. Is that possible? Can be done legally or laws have to be changed? Does the Congress agree to these proposals?

e. Which are the economic consequences of the budget deficit. Which are the winners and losers?

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Budget Deficit
a) What is the Budget Deficit? Is it dangerous?
A budget deficit is an indicator of financial health in which expenditures exceed revenue.
The term budget deficit is most commonly used to refer to government spending rather than
business or individual spending, but can be applied to all of these entities. When referring to
accrued federal government deficits, the deficits are referred to as the national debt.
(Investopedia, s.f.)
In cases in which a budget deficit is identified, current expenses exceed the amount of
income being received through standard operations. In order to correct a budget deficit, a
nation may need to cut back on certain expenditures or increase revenue-generating
activities, or employ a combination of the two. (Investopedia, s.f.)
The budget deficit is dangerous because it has an enormous impact on the economic wellbeing of the nation as a whole and is felt at all levels. A consistent budget deficit can be
dangerous for the nation's economy in a number of different ways. (Lewis, s.f.)
b) Which was the budget deficit since 1950 (the Federal Reserve website is ...


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