Deficits & Debts: Crash Course Economics #9

A budget (a)   is when the government spends more than it brings in in tax revenue in a given year.

Debt is the (a)   of budget deficits.

Which nation has the largest debt?

• South Korea

• Germany

• United States

• China

Which country has the highest debt to GPD ratio?

• United States

• Spain

• Germany

• Greece

Who does the government spend the most money on?

• Grandma and Grandpa

• Defense

• Low Income Aid

• Research and Development

What might happen if the government continues to borrow money?

• The lenders will demand recompense sooner.

• There won't be enough funds for consumers to borrow.

• The economy will stagnate.

• The economy will boom.

If a government defaults on its debts, it can cause a massive (a)   .

The _____ ______ is a cap on how much national debt can be issued by the US Treasury.

(a)