Unformatted text preview: which causes inflation. It can also offer people the option to buy bonds. 6. The national debt increases as deficit spending is rising. 7. Luxembourg and the United Kingdom. 8. About 100% between USA and Japan. 9. The supply-side would say that since there is a surplus, there will continue to e a surplus so there could be tax cuts. 10. It is a multiplier effect because you are spending 80% more of that $50 increase and it multiplies as inflation increases. 11. As the government is lagging in progressive policies and steps to bring the economy out of recession, it is limiting what can be done. 12. The federal government was giving out welfare. 13. A balanced budget means no deficit spending unless there was to be revenue....
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- Fall '07
- Fiscal Policy, Keynesian economics