Imagine the federal government has a national debt of $10.2 trillion. Congress' budget for the coming year includes a spending projection of $4.2 billion. Tax revenue projects $3.8 billion. Which fiscal policy would Congress have to adopt to maintain spending levels without increasing the debt?

Question

Talan Brandt

Social Studies

27 September, 10:26

Imagine the federal government has a national debt of $10.2 trillion. Congress' budget for the coming year includes a spending projection of $4.2 billion. Tax revenue projects $3.8 billion. Which fiscal policy would Congress have to adopt to maintain spending levels without increasing the debt?

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Gianna Kerr · Answer 1

The answer to the question is: decrease in spending. Imagine the Federal government has a national debt of $10.2 trillion. Congress' budget for the coming year includes a spending projection of $4.2 billion. Tax revenue projects at $3.8 billion. The fiscal policy that should be adopted would be decrease in spending so that there's a maintenance in spending levels without having to increase the debt.