What is the difference between budget deficits and the national debt?
What will be an ideal response?
An ideal response will:
1, Define a budget deficit as the difference between yearly revenues and expenditures, and define the national debt as the nation's cumulative deficits.
2, Outline the main difference between the two, which is that the national debt is the long-term structural result of ongoing budget deficits.
3, Note that reducing the level of national debt is far more difficult than reducing budget deficits.
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Which of the following taxes has the greatest possibility of discouraging entrepreneurial activity and economic growth?
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