Suppose the U.S. federal government's revenues and expenditure accounts displayed the amounts shown in this fiscal year (each item in billions of U.S. dollars): What were the government's total revenues and expenditures in the most recent fiscal year? Was the budget in surplus or deficit? All other factors held constant, what is likely to happen to the economy's level of income and interest rates as a result of this year's government budget position? Please explain the reasoning behind your answer to this last question.

Question

Suppose the U.S. federal government's revenues and expenditure accounts displayed the amounts shown in this fiscal year (each item in billions of U.S. dollars):  What were the government's total revenues and expenditures in the most recent fiscal year? Was the budget in surplus or deficit? All other factors held constant, what is likely to happen to the economy's level of income and interest rates as a result of this year's government budget position? Please explain the reasoning behind your answer to this last question.

Quizplus · Accepted Answer

The Answer of Suppose the U.S. federal government's revenues and expenditure accounts displayed the amounts shown in this fiscal year (each item in billions of U.S. dollars):  What were the government's total revenues and expenditures in the most recent fiscal year? Was the budget in surplus or deficit? All other factors held constant, what is likely to happen to the economy's level of income and interest rates as a result of this year's government budget position? Please explain the reasoning behind your answer to this last question.