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Unformatted text preview: federal government securities. The public debt is a stock measured at a given point in time. It increases when there is a deficit. (The ∑ of the yearly deficits) Annual interest payments on the public debt - The size of the public debt is not as important as how much interest we have to pay on the debt. Balanced Budget- The federal government has a balanced budget when revenues equal spending during a given period of time. Crowding-out Effect – The tendency of expansionary fiscal policy to cause a decrease in planned investment or planned consumption in the private sector; this decrease normally results from the rise in interest rates. Entitlements – Guaranteed benefits under a government program such as Social Security, Medicare, or Medicaid. 14...
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This note was uploaded on 06/06/2011 for the course ECON 101 taught by Professor Dsliva during the Fall '11 term at Moraine Valley Community College.
- Fall '11