The us government can pay for an increase in its

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1.The U.S. government can pay for an increase in its expenditures by one of three methods. It can raise taxes, issue debt, or print money. Explain what the Treasury Department would have to do to employ the last of these methods.18-11
Chapter 18 - Federal, State, and Local Governments Operating in the Financial Markets
2.Many state governments have complained in recent years about the “unfunded mandates” of the federal government, whereby social programs that were previously funded by the federal government or new programs are passed down to the states. Explain what would happen if the federal government cut taxes to stimulate the economy at a time when additional unfunded mandates were being pressed upon the states. Would federal tax cuts have the same beneficial effect on the economy as before?
18-12
Chapter 18 - Federal, State, and Local Governments Operating in the Financial Markets

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