What Factors Affect the Government's Ability to Keep Deficits and Debt

question 170

Essay

What factors affect the government's ability to keep deficits and debt under control over the long term? Explain.

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Definitions:

Investing Activities

Financial actions associated with the purchase and sale of long-term assets and other investments not considered cash equivalents.

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and receiving dividends.

Financing Activities

Financing activities are transactions and business events that involve raising capital and repaying investors, affecting a company's equity and liabilities.

Long-term Debt

Borrowings and financial obligations that are due more than one year in the future, often used for financing or acquiring assets.