Fiscal Policy

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Title: Fiscal Policy

Essay Details:

Subject: Business

Author: Mabel J

Date: December 5, 2014

Level: University

Grade: A

Length: 6 / 1784

Essay text:

According to economists, the debt will increase by 1.6 billion dollars per day! In economical terms, a debt occurs when an individual or group borrows money and is charged interest on that loan. The Federal Government through deficits (spending more than what is collected in taxes) in budget spending created this debt of over seven trillion dollars. In the Revised Circular Flow Model in the appendix, we can see that there is a leakage of government spending into interest paid on its debt. The dollar amount in interest that the borrower (the government in this case) must pay to simply maintain the debt is called the debt service...

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