Balanced budget-tax revenues equal the sum of discretionary

Reference no: EM13685056

1. What would be true of entitlement spending if the percentage of taxes allocated to discretionary spending rose to 100% and the federal budget was balances? (Hint: Under a balanced budget, tax revenues equal the sum of discretionary and nondiscretionary expenditures.)

2. How would entitlement spending be funded if tax revenues just covered discretionary spending and there was a government budget deficit?

Reference no: EM13685056

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