Presentation on theme: "Do Now: What is a budget?. Budget President Congress Revenues (taxes) Expenditures (spending/appropriations) Categories of spending (Big 3)"— Presentation transcript:
Interest Payments on the Debt part of the budget Grows as the debt grows 7% of budget due to low interest rates
Effects of National Debt Crowding out (?) Increase total demand ofr goods/services (inflation) Interest payments on debt Foreign owned portion
1. Define Budget. 2. What is our federal government’s major source of revenue? 3. What is meant by expenditure? 4. What are the 3 biggest categories of federal spending?
When government expenditures exceed revenue a ________ has occurred. When government revenues exceed expenditures a _________has occurred. The accumulated borrowing the federal government engages to finance its budget deficits is the ________________.
What is the current level of the U.S. national debt? What are some negative effects of a large national debt?
Do Now: What is a budget deficit? What is the national debt?