How large is the current U.S. budget deficit and how has it changed over the last few years?

Answer the following short essay questions about U.S. fiscal policy. While this is not a paper, you must still properly cite your answer and write in full sentences.

  1. How large is the current U.S. budget deficit and how has it changed over the last few years?
  2. What is the total amount of U.S. debt and how has this changed in the last few years? Who holds this debt?
  3. How does the current administration propose reducing the national debt? Do you think this plan is economically sound and achievable?
  4. What are the potential economic consequences (short and long run) of large budget deficits/debt?
  5. How have recent spending cuts impacted the economy?
  6. What additional/different spending cuts would you recommend and why?

Your total assignment should be 3-7 pages long and submitted in a MS Word document.

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