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Q: Ask us is one way that the government cannot prevent a budget deficit?
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What is one way that the government cannot prevent a budget deficit?

One way that the government cannot prevent a budget deficit is by selling stocks.


What is one way the government cannot prevent a budget deficit?

One way that the government cannot prevent a budget deficit is by selling stocks.


Which is not a way the government can make up for a budget deficit?

One way that the government cannot prevent a budget deficit is by selling stocks.


Can the government always reduce the budget deficit by simply increasing taxes?

Large budget deficits cannot be cured by simply raising taxes. Depending on the size of the debt and the size of an economy, usually long term plans are required. This would normally consist of the reduction of government expenditures and increases in taxes. The details of such a plan depend on many variables.


What is the economic effect that results from the government running a budget deficit?

Demand increases, pushing producers to increase supply. (Old answer, by earlier user) A budget deficit put simply means, the government is or has been spending beyond its resources with currently running a deficit with primarily ending up borrowing domestically or internationally or even resorting to higher taxes. Its true spending beyond its means causes increased demand which may cause a demand pull inflation if supplies don't adjust. Further the borrowing causes a burden and it also has its interest payments. If the economy cannot sustain the borrowing then it may lead to defaults and causing the economy to a depression and investment flowing out and may also depreciate the country's currency.

Related questions

What is one way that the government cannot prevent a budget deficit?

One way that the government cannot prevent a budget deficit is by selling stocks.


What is one way the government cannot prevent a budget deficit?

One way that the government cannot prevent a budget deficit is by selling stocks.


Which is not a way the government can make up for a budget deficit?

One way that the government cannot prevent a budget deficit is by selling stocks.


what is one way that the government cannot prevent a budget deficit (apex)?

By selling stocks


Can the government always reduce the budget deficit by simply increasing taxes?

Large budget deficits cannot be cured by simply raising taxes. Depending on the size of the debt and the size of an economy, usually long term plans are required. This would normally consist of the reduction of government expenditures and increases in taxes. The details of such a plan depend on many variables.


What is the economic effect that results from the government running a budget deficit?

Demand increases, pushing producers to increase supply. (Old answer, by earlier user) A budget deficit put simply means, the government is or has been spending beyond its resources with currently running a deficit with primarily ending up borrowing domestically or internationally or even resorting to higher taxes. Its true spending beyond its means causes increased demand which may cause a demand pull inflation if supplies don't adjust. Further the borrowing causes a burden and it also has its interest payments. If the economy cannot sustain the borrowing then it may lead to defaults and causing the economy to a depression and investment flowing out and may also depreciate the country's currency.


What is the effect that results from the government running a budget deficit?

Demand increases, pushing producers to increase supply. (Old answer, by earlier user) A budget deficit put simply means, the government is or has been spending beyond its resources with currently running a deficit with primarily ending up borrowing domestically or internationally or even resorting to higher taxes. Its true spending beyond its means causes increased demand which may cause a demand pull inflation if supplies don't adjust. Further the borrowing causes a burden and it also has its interest payments. If the economy cannot sustain the borrowing then it may lead to defaults and causing the economy to a depression and investment flowing out and may also depreciate the country's currency.


What is a plan in which the government cannot spend more money than it takes in called?

I'm sorry, I just know what term is used to define when a government IS spending more money that it takes in, it's called deficit spending.


What are the preventive measures taken by the government to prevent tri-state tornado?

Nothing, tornadoes cannot be prevented.


What is meant by the term Attention Deficit?

Attention Deficit means that one has trouble focusing on tasks. In other words, they cannot pay attention. This is the primary symptom of Attention Deficit Disorder.


Who are the politicians that are shutting down the US government?

Both parties cannot agree on how the US budget should be spent so the government is in shutdown until they have agreed. So in a sense its all the members of the US Congress have shutdown the US Government


What is an excess of imports over exports?

This would be a trade deficit, where the imports cannot be balanced by exports.