Because of the giant deficits of recent years, a growing federal debt has been ____

Question

Quizplus · Accepted Answer

The growing federal debt, caused by giant deficits, has been central to the debate about fiscal policy effectiveness. This is because fiscal policy involves government spending and taxation, both of which have a direct impact on the budget deficit and thus on the national debt. The debate centers on how to reduce the deficit and debt, through either spending cuts or tax increases, and what impact those policies might have on the economy. Monetary policy, on the other hand, typically deals with interest rates and the money supply, and while it can indirectly impact the budget deficit, it is not the primary tool for addressing it.

Because of the Giant Deficits of Recent Years, a Growing