This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.
Specification:
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Fiscal policy
Click to read the article below and then answer the questions:
The US hit the debt ceiling. What happens next?
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What is the debt ceiling?
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Identify the components of fiscal policy
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Distinguish between i) a budget deficit; and ii) national debt
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With reference to the chart, compare the USA’s total debt outstanding during the period shown
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‘The Treasury may try to prioritise certain payments over others, chiefly interest and principal payments on the governments debt.’ Explain the opportunity costs associated with a growing national debt
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What is Standard & Poor’s?
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Discuss the implications of a US default
Gavin Clarke, Emmanuel College
This post was originally published on Financial Times
