Economics class: The US hit the debt ceiling. What happens next?
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Specification:
Fiscal policy
Click to read the article below and then answer the questions:
The US hit the debt ceiling. What happens next?
What is the debt ceiling?
Identify the components of fiscal policy
Distinguish between i) a budget deficit; and ii) national debt
With reference to the chart, compare the USA’s total debt outstanding during the period shown
‘The Treasury may try to prioritise certain payments over others, chiefly interest and principal payments on the governments debt.’ Explain the opportunity costs associated with a growing national debt
What is Standard & Poor’s?
Discuss the implications of a US default
Gavin Clarke, Emmanuel College
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