Tax collections exceed government spending

Reference no: EM13256193

In 2000, the federal debt was being paid down because the federal budget was in surplus. Recall that surplus means that tax collections (T) exceed government spending (G). The surplus (T-G) was used to buy back government bonds from the public,reducing the federal debt. The main method by which the Fed increases the money supply is to buy government bonds by using open market operations. What is the impact on the money supply of using the fiscal surplus to buy back bonds?In terms of their impacts on the money supply , what is the difference between Fed open market purchases of bonds and Treasury purchases of bonds using tax revenues?

Reference no: EM13256193

Questions Cloud

Annual energy saving-annual saving : A 60 HP standard ac motor is operated for 85% time in a year at 75% load with efficiency and power factor as 82% and 0.8, respectively. Standard ac motor is replaced by an energy efficient motor of same capacity. At 75% load, the efficiency and power..

Sports team has decided to relocate to your city : A professional sports team has decided to relocate to your city. The city has decided to build a stadium for the team. Unfortunately, the site is contaminated and must be cleaned up or the project will fall through.

Calculates the sum of the negative numbers : Write a complete C program that asks the user for numbers (doubles - we don't know how many) and calculates the sum of the negative numbers only. 0 is the sentinel to stop the input.

Why do your eyes have a blind spot : In what sort of light would vision out of the corner of your eye be the most precise? Why do your eyes have a blind spot? If each eye has a blind spot, why is there no disruption in our view of the world, even when one eye is closed?

Tax collections exceed government spending : In 2000, the federal debt was being paid down because the federal budget was in surplus. Recall that surplus means that tax collections (T) exceed government spending (G). The surplus (T-G) was used to buy back government bonds from the public,reduci..

Laplace transform to solve wing initial value problem : Use the Laplace transform to solve the following initial value problem:

Functions and dangers of organized religion : What are the functions and dangers of organized religion? Refer to God Mechanics by Guy Consolmagno.

Method of science and the method of theology : Contrast the method of science and the method of theology. Use refenerces from God's Mechanics by Guy Consolmagn.

Potential strategies-differentiation-cost leadership : Of the potential strategies available to Regal Marine, have they chosen differentiation, cost leadership, or quick response? Do you think that is a good choice for a boat manufacturer? Why or why not?

User Account

All Pages