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How does a government's fiscal deficit affect its Balance of Payments?
Does a government's fiscal deficit affect the balance of payments of the country?
3 Answers
- Anonymous1 decade agoFavorite Answer
you are not supposed to be able to decipher complex economics jiberish ... they love to keep people focused on a topic they cant possibly understand because it keeps the attention away from the real solution ... getting rid of the whole debt-based system and pulling the plug on the federal reserve. All talk of deficits and a balanced budget and paying off the national debt are an impossibility under the current system .... there is no way to do that without extinguishing our money supply ... the only answer is broad economic and banking reform ...btw sorry i didnt answer your question but i guarantee that even most of congress doesnt know the answer to that question lol .... everyone needs to get educated to what is really going on with the economy and especially they need to quit blaming the immigrants .. they have very little to do with it.
Source(s): A fiscal deficit is often funded by issuing bonds, like Treasury bills or consols. These pay interest, either for a fixed period or indefinitely. If the interest and capital repayments are too great, a nation may default on its debts, most usually to foreign debtors. - Anonymous1 decade ago
well yea
