Answer the following questions.
Question 1) Distinguish between deficit and debt.
Question 2) Describe each of the three budget philosophies.
Question 3) Write down three principal causes of the public debt.
Question 4) Explain the absolute size of debt and relative size as a percentage of GDP.
Question 5) Explain the annual interest charges on the debt, who holds debt, and impact of inflation on the debt.
Question 6) Describe why the debt can also be considered public credit.
Question 7) Explain and discuss two widely held myths about the public debt.
Question 8) Describe the real or potential effect of debt on income distribution, economic incentives, fiscal policy, and private investment.
Question 9) Explain how debt plays the positive role in society.
Question 10) Describe four policy options for the current and future surpluses.
Question 11) Explain how budget deficits are related to trade deficits.