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The government can meet its interest bill without having to levy taxes if it issues more bonds and if the?

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Q: The government can meet its interest bill without having to levy taxes if it issues more bonds and if the?
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Why government expenditure financed through debt issues is likely to be more expansionary than tax financed expenditure?

Government financed through debts issues is likely to be more expansionary than tax financed expenditure in that the government will not make any profits because it will be trying to pay its debt than tax financed which is money contributed by the workers of the country and the money is interest free.


Many business and labor interest groups are concerned with issues regarding?

The Economy


Why is there so much government regulation involving social responsibility issues?

Why is there so much government regulation involving social responsibility issues? Should there be less


What role does the fed play in the foreign exchange markets?

One the responsibilities of the FED is to maintain the stability of the Dollar value. To do so, the FED changes the interest rate (which influence directly on the currency value), issues or buys back government bonds and more.


What are the two instruments used by macroeconomics?

The question is not very specific. The instruments are usually regarded as ways that the Government controls the rate of progress of the social system. It does this by instructing the treasury and national bank to: 1. To reduce or increase or reduce the National Debt. It does this by printing or withdrawing money from the banks including the national bank. 2. Adjust the "prime rate" of interest on new issues of Government Bonds. This is not able to be very effective, because it normally has to be not very different from the rate at which the average investment in shares grows. In times of slump when the rate of progress is low, the greater confidence in these bonds allows the rate to be set low. In time of boom and prosperity, the bonds will not find purchasers unless the rate is high and similar to the average rate of growth of the shares in the stock-market. By making this rate greater or smaller than the general trens, re-issues of the bonds will be sought after or neglected, resulting in item 1. having an less direct effect without money necessarly having to be printed or destroyed.

Related questions

Is Interest groups more likely to believe in a smaller government and take more conservative stances on social issues?

iterest groups


The most important issues facing the new federal government?

The most important issues facing the new federal government were leadership and financing. As a new government, finding the right government was a difficult task. Funding this new government was also difficult without imposing taxes and meeting resistance.


What are some issues that humans might have if having a Tasmanian Devil as a Pet?

Mostly legal issues, as it is illegal to keep a Tasmanian Devil without a proper licence.


What is the meaning of current issues?

Things that are currently happening that are of interest generally or maybe relevant to the context you are talking about. In a general sense current issues could be things in the news. Contextual issues could relate to problems you are currently having with your car that you want to tell a mechanic about.


Why does the central government get involved in issues that would ordinarily be done by the local government?

That is a tough question, depends on the issue per se. I upper government might become involved if the issue is to great for the lower government. Additionally, the upper government might have vested interest with a specific issue ending in their favor as a whole.


What makes the Saudi Arabian government non democratic?

There are many things that make the Saudi Arabian government non democratic. The government handles issues without any consultation and policies are formulated in a dictatorial manner.


What is a public interest?

a public interest group is an orginanization the tries to persuade public officials to respond to the shared attitudes of their members. Interest groups let the public know what the issues are and the represent people across the country not just in your city. They provide facts and information that the government may not have time to find out. it is a great way for people to become involved and they act as a watch dog for the government.


What is public-interest group?

a public interest group is an orginanization the tries to persuade public officials to respond to the shared attitudes of their members. Interest groups let the public know what the issues are and the represent people across the country not just in your city. They provide facts and information that the government may not have time to find out. it is a great way for people to become involved and they act as a watch dog for the government.


What are the key issues local government?

The key issues in the local government are the issue on corruption and abuse of power.


Why government expenditure financed through debt issues is likely to be more expansionary than tax financed expenditure?

Government financed through debts issues is likely to be more expansionary than tax financed expenditure in that the government will not make any profits because it will be trying to pay its debt than tax financed which is money contributed by the workers of the country and the money is interest free.


What age can you move out at?

Without parental permission, when you are age of majority in your state, usually 18.


What are some issues involved with gambling?

Some issues involved with gambling are: -crime(theft,larceny,embezzlement) -going bankrupt,having to pay taxes to government -seperates relationship with your spouse and rest of family because of gambling addiction