Deficits and public debt (Chapter 8)

Question 1

modified government budget (Budget)

Answer 1

= inflows - outflows

= T - (G+TR+IoPD)

Question 2

government debt

Answer 2

• accumulation of deficits and surpluses over time.

Question 3

debt measures

Answer 3

• total debt somewhat decieving
• debt/GDP ratio more meaningful
• fraction of tax revenues going to interest payments
• fraction of debt that is foreign held

Question 4

interest payments

Answer 4

• first thing to be paid

Question 5

relative per capita market income (RPCMI)

Answer 5

• (income in region/population in region (market income in nation/population in nation) x100

Question 6

net federal fiscal balance (NNFB)

Answer 6

= total money sent to federal government by region minus total money injected by federal government into region.