That makes government bonds more attractive than riskier corporate bonds. Such fiscal deficit has become unsustainable. Even during the Great Recession, the largest deficit … amount by which government REVENUES EXCEED GOVERNMENT EXPENDITURES in a given year public debt total accumulation of the deficits (minus the surpluses) government incurred through time. Government bonds finance the deficit. Why must the opportunity cost of a decision always be something desirable? The deficit has occurred because the U.S. government currently spends more than it earns. There is an increasing concern about the unfavourable. Economics. . Persistently large projected deficits would lead to significant growth in debt held by the public. Under current law, the federal government is projected to borrow an additional $12.7 trillion from the end of 2018 through 2029, boosting debt held by the public to $28.5 trillion, or 92 percent of GDP, by the end of the period—up from 78 percent now. 1 2 3. what is the probable result called? While a deficit describes the relationship between spending and revenues in a single year, the federal debt - also referred to as the national debt - is the sum of all past deficits, minus the amount the federal government has since repaid. When the government attempts to cover large deficits by creating more money. There is an increasing concern about the unfavourable effect on the productive capital stock of persistent and large government deficits, which has invariably led to increased government debt as a ratio of GDP and total private wealth. government borrowing hyperinflation (my choice) excess currency full employment . Deficit financing, practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds.Although budget deficits may occur for numerous reasons, the term usually refers to a conscious attempt to stimulate the economy by lowering tax rates or increasing government expenditures. Asked by Wiki User. Every year in which the government runs a deficit, the money it borrows is added to the federal debt. Top Answer. Deficit and Debt: What are they? Please When the government attempts to cover large deficits by creating more money, what is the probable result called? … Please When the government attempts to cover large deficits by creating more money, what is the probable result called? That allows governments to keep running deficits … Deficits over the last 50 years have averaged just 3% of GDP. Most creditors think that the government is highly likely to repay its creditors. 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