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Explain the following terms: fiscal deficit federal debt debt ceiling

User Jimchao
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Fiscal deficit refers to the situation where a government's expenditures exceed its revenues in a given fiscal year. In other words, it is the difference between the government's total spending and its total revenue. Fiscal deficit is usually financed through borrowing, which leads to an increase in the government's debt.

Federal debt (also known as national debt or public debt) refers to the total amount of money that a government owes to its creditors, which can include individuals, institutions, and other countries. Federal debt is accumulated over time through budget deficits, and it is typically funded by issuing government bonds.

Debt ceiling is the maximum amount of money that a government is allowed to borrow, as determined by legislation. Once the debt ceiling is reached, the government is not authorized to borrow any more money, which can lead to a government shutdown or default on its obligations.

In summary, fiscal deficit is the annual shortfall between a government's revenue and expenditure, federal debt is the total amount of money owed by a government, and the debt ceiling is the maximum amount of money that a government can borrow.

User Iman Mahmoudinasab
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Answer:

What is the federal government debt ceiling?

The debt ceiling, or debt limit, is a restriction imposed by Congress on the amount of outstanding national debt that the federal government can have. The debt ceiling is the amount that the Treasury can borrow to pay the bills that have become due and pay for future investments.

Step-by-step explanation:

User GoldenaArcher
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