fiscal policy Flashcards
1
Q
what is public debt
A
the total a government owes e.g it is all the budget deficit added together. It is cumulative debt owed by a national government
2
Q
what is a budget (fiscal) deficit
A
Is how much has been borrowed that year- it will increase the public debt by how much is borrowed
3
Q
what is a gov bond
A
tells a buyer that gov will lay back the amount borrowed (cost of bond)
4
Q
A
