1 a- Why do you think we should use taxation as a redistribution tool in a country? b-  Show and explain the effects of government borrowing regarding  Ricardo’s Equivalence Theorem and give the main arguments against this theorem

Q: Discuss why external and domestic borrowing shifts the burden from present taxpayers to future…

A: When talking about external borrowing, it is the borrowings of the government from the rest of the…

Q: GDP $ 450 $ 425 $ 2,000 500 450 3,000 600 500 4,000 640 620 5,000 5 680 580 4,800 6 600 620 5,000…

A: Answer; Option (a) 6 is correct answer

Q: 1- Can you explain the benefit principle and ability to pay approach with regard to tax equity.…

A: "Thank you for submitting the questions, But we are authorized to answer one question at a time,…

Q: the South African government can fund its deficits without the economy experiencing rising general…

A: The budget deficit occurs where the total revenue is less than the expenditure of government.

Q: The federal budget deficit has grown so quickly in the past 5-10 years because of a) increased…

A: Federal Budget Deficit is the excess of government spending over government receipts.

Q: PART B AND C ONLY

A: b) Since the assumption is made that the changes in government expenditure in both period is zerothe…

Q: 1. A country has a government debt-to-DGP ratio of d=80%. The effective interest rate on the debt,…

A: Gross domestic product means the goods and services produced in an economy. It is the summation of…

Q: 2. If a government runs a budget deficit of $10 billion dollars each year for ten years, then a…

A: * ANSWER :-  * (2) as based on given data ,

Q: Problem 13-05 (algo) Refer to the following table for Waxwania: Government Expenditures, G Tax…

A: When expenditure surpasses revenue, a budget deficit occurs. Although people, businesses, and other…

Q: Consider the three top spending priorities. How do public policy priorities, and how they are…

A: Government spending: It refers to the expenditure that government do in the economy. These…

Q: 2. What are the budget revenues for a government to finance government spending? Explain why money…

A: There are a few sources of revenue for the government to finance its expenditure. The major part of…

Q: # 5: What do you think the obstacles will be to reducing projected deficits over the long term?…

A: In monetary terms, a deficit happens once expenses exceed revenues, imports exceed exports, or…

Q: Do you think using we should use taxation as a redistribution tool in a country?

A: Since you have posted multiple questions and not specified which question needs to be solved, we…

Q: Explain the effects of government borrowing regarding Ricardo's Equivalence Theorem and give the…

A: The Ricardian Equivalence Theorem postulates that the consumers in an economy are highly and…

Q: 4. Ghana has continually seen an increase in its public debt stock from one government to another.…

A: Answer: Introduction: Public debt: Public debt stock refers to the total outstanding debt of the…

Q: 1. Which of the following would neutralize and offset the stimulating effect of deficit spending? *…

A: When government increases spending to boost Aggregate demand, the government injections to the…

Q: 2. What are the budget revenues for a government to finance government spending?

A: The government as an economic agent would result in the income of the government to finance the…

Q: What are the implications of fiscal administration in the economy? Cite at least three significance.

A: Fiscal administration: Fiscal administration is the process of administrating the fiscal policy…

Q: Consider the government's budget balance Suppose G=440 and the government's net tax revenue is equal…

A: Given information, Governement spending (G)= 440 Government's net tax revenue= 0.13Y Income…

Q: A reduction in current taxes must result in which of the following?       lower future taxes…

A: Tax cuts may slow long-run economic process by increasing budget deficits. When the economy is…

Q: 14. What are the three tools of fiscal policy? Tixes a. b. c.

A: The fiscal policy is the way or process to balance the economic activities in an economy. For…

Q: 7. In what ways is the government debt a potential burden on future generations? What is the…

A: In classical theory, the real interest rate is determined in the loanable funds market. In the…

Q: 2.18 Privatizing a state enterprise or establishment that is losing money, helps to improve the…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: Within the context of taxation policy, many economists have preferred the use of consumption tax to…

A: The income tax is the tax that is levied on the income of the people directly. It is collected,…

Q: One area of concern with regard to national debt is the burden it may place onfuture generations.…

A: The national debt includes all kinds of borrowings made by the government to meet its expenses.…

Q: 5. Now assume that a recession ( triggered by a reduction of Aggregate Demand ) causes each of the…

A: Tax paid = Tax rate * Income

Q: Table 24.8 All Figures in Billions of Dollars Comsumption Spending Income) Net Taxes (C=100 + 0.9Yd)…

A:

Q: Show and explain the effects of government borrowing regarding  Ricardo’s Equivalence Theorem and…

A: Economic theory of Ricardian equivalence states that the overall impact of funding spending of…

Q: 6. If deficit spending "crowds out" some private investment, could fututre generations be worse off?…

A: answer is as follow

Q: Given: Nominal deficit = Nominal primary deficit + Nominal interest payments Change in debt-GDP…

A: It is asked to explain how the above formula is derived. It is explained in the next step.

Q: 7. The state of Minnegan is considering two alternative methods of funding local road construction,…

A: Introduction: The strategy is a move that directors make to achieve at least one of the…

Q: Question 4 (1) Differentiate between the following terms: a. a budget deficit. b. the government…

A: a). budget deficit is the excess of the expenditure or spending of the government over the revenue…

Q: 6. A transfer payment is a govermment payment A not made in exchange for a good or service. B. to…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 31) What are vertical equity and horizontal equity associated with? the benefits principle of…

A: Tax is a fee or a charge is imposed by the government on individuals and firms. Government receives…