Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. economics
  3. why is education spending one of the first areas t

Why is education spending one of the first areas the state legislature cuts when faced with...

90.2K

Verified Solution

Question

Economics

Why is education spending one of the first areas the statelegislature cuts when faced with a budget crisis? What are theeffects of cutting spending?

Answer & Explanation Solved by verified expert
4.5 Ratings (969 Votes)
Answer A budget deficit occurs when a government spending is greater than tax revenues This leads to an accumulation of public sector debt If the deficits are unsustainable this can cause rising bond yields higher interest payments and in the worse case lead to a loss of confidence in the government Though this is quite rare for countries with their own currency The obvious way to reduce a budget deficit is to increase tax rates and cut government spending However the difficulty is that    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Assume you barrow $100,000 for a year and the stated interestrate is 5 percent....

Accounting
Q

2. How might the movements produced by the rabbit be different than in human muscles? 3....

Medical Sciences
Q

A small current loop can be used as a compass. (a) When it's placed in an...

Physics
Q

John and his colleagues all get along well. John is meticulous, a little too serious and...

Psychology
Q

During blood transfusion the needle is inserted in a vein where the gauge pressure is...

Physics
Q

Jessica is making a map of her school on a coordinate plane. Two hallways in...

Basic Math
Q

over each of the indicated intervals a Interval 10 0 1 Absolute maximum 2 Absolute...

Calculus
Q

Find the integral by whatever means are necessary either substitution or tables Remember to use...

Calculus
Q

Please help. Thank you! A. P182,800 B. P194,800 C. P192,200...

Accounting
Q

3. Assume instead that Chipman uses the aging of accounts receivable method and estimates that...

Accounting
Q

Help me Solve this, and please explain step by step, so i can use it...

Accounting
Q

Select 5 stocks Download the monthly adjusted close prices of the selected stocks over the...

Finance