1. The existence of budget deficits must mean that the government is conducting an expansionary fiscal policy. OTrue False

Q: stock of government debt Will Con ue to rise a. Increases its taxes. O b. Runs a budget surplus. Oc.…

A: When current expenses exceed/surpasses the amount of revenue collected via normal operations, a…

Q: Question: State the macroeconomic effects of budget deficit

A: Macroeconomy is that part of economics that deals with the economy as a whole. It covers the…

Q: 2. What are some of the predicted effects of repealing DACA on the U.S. federal budget? Repealing…

A: DACA was created to safeguard qualifying immigrant teenagers who arrived in the United States as…

Q: diagram, in which Tis tax revenues and G is government expenditures. All figures are in billions of…

A: Budget deficit = G-T at full employment level of $400 billion G=60 billion and T=40 billion     1.…

Q: 6. Which of the following is not a fiscal instrument: * O Budget O Public expenditure О Тахation All…

A: Answer: 6) Option (d) is correct All are fascal instruments

Q: The diagram below shows two budget deficit functions for a hypothetical economy. Budget Deficit…

A: Given: At point "A" real GDP = $100 million Budget deficit = $14 million

Q: In a government budget the total expenditure is $64,000 billion and a total receipt excluding the…

A:

Q: What is your deficit in your third year of college? $ S How much debt do you have that year? $ S

A: Deficit indicates the excess of spending over earnings.

Q: 7) If investment falls a lot when the interest rate rises, there will be A) a steeper investment…

A: An item or an asset that is being acquired with the sole goal of appreciation of the asset or…

Q: We would expect Canada's cyclical deficit or surplus to equal zero when Select one: O A. the primary…

A: Cyclical deficit is defined as the deficit that occurs at the bottom of a business cycle.

Q: Suppose the national debt of a country is currently $400 billion dollar and the national nominal…

A: Net Deficit is defined as the accumulation of the governments annual budget deficits.  Nominal…

Q: Suppose a closed economy generates $2900 output and income in equilibrium. Suppose also that the…

A: Output of the economy = $2900 Government expenditure = $400 Lump-sum tax = $200

Q: Suppose a country's government decides to change its spending and taxing policy in order to reduce…

A: Budget deficit is the difference between government receipts and expenses.  Budget Deficit occurs…

Q: 1.in what way government is able to finance its deficit? 2.explain the reason why budget deficit can…

A: 1. In what way government is able to finance its deficit Fiscal deficits occur when the government…

Q: 2. What is the largest component of the federal budget? A) Entitlements C) Defense B) Net interest

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

Q: Calculate the value of primary deficit when the borrowing of the government are $45,000 and the…

A: # Borrowings of the government excluding the interest payments gives the value of primary deficit.

Q: 1.a) Define fiscal policies and provide examples of 2-3 specific policies from any level of…

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

Q: A(n) of government deficit from 1% to 3% of real GDP will shift the curve to the decrease, supply,…

A: Answer: C (increase, demand, right) Explanation: An increase in the budget deficit from 1% to 3%…

Q: We are given that the Borrowings are $15000 and the interest are $6000  Calculate the fiscal…

A: # The borrowings of the government represents the fiscal deficit of the government because it is…

Q: Suppose a government has no debt and a balanced budget. Suddenly it decides to spend $10 billion…

A: "Since you have asked multiple parts, we will answer only first three parts for you, if you have any…

Q: b) If there is a serious gap in demand what will be the results aa) without and ab) with fiscal…

A: b) Demand gap= Available demand in the period- Our visible demand in the period The difference…

Q: 1. Consider a two-period economy with lump-sum taxes. Suppose ment announces a tax cut of 10 in…

A:

Q: The difference between what a government spends and what it collects in taxes in a year is Lütfen…

A: The government revenue is what it earns through its taxes. The government expenditure is what it…

Q: 1. How does the government spend? 2. How does the government tax? 3. What are budg t deficits?

A: Government basically refers to a structure that governs a group of people, and it generally consists…

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: | Discussion: (d) What is the counterpart to the recent (COVID driven) (d). increase in the federal…

A: As we know COVID has pushed the economy years back and shows how our medical infrastructure was not…

Q: Find the value of fiscal deficit if the primary deficit is 6100 and the interest payments are 50?

A: Actually in the given question, We can see that Primary deficit = 6100 Interest payment = 50 Fiscal…

Q: Suppose a closed economy generates $2800 output and income in equilibrium.  Suppose also that the…

A: The ‘government deficit’ is the ‘government expenditure’ less ‘government revenue’. The government…

Q: 5. Let C-120-0.6Y-140, G-200, T-100 (a) What are govemment spending multpler, tax multiplier, and…

A: Government spending or expenditure includes all government consumption, investment, and transfer…

Q: The government of Osris believes in balancing its budget over a seven-year cycle. Over the first six…

A: Given that the tax rate is 0.25, we will have the following table:

Q: 3. In FY 2017 (the fiscal year 2017 is from October 1, 2017 to September 30, the U.S. Federal…

A: Answer - Thank you for submitting the questions.But, we are authorized to solve one question at a…

Q: 1. You are appointed secretary of the treasury of a recently inde- pendent country called Rugaria.…

A: Government Spending(G) = 10 millions. Taxes= 9 millions. Budget deficit Governnment spedning - Taxes…

Q: a real GrOSS Dom stic OT Ș18.4 billloh. The debt service payments are $35 million with a 4% interest…

A: Here we calculate the debt-to-GDP ratio by using the given information , so the calculation of the…

Q: 3. Suppose the country of Macroland's annual fiscal standing for six recent years. Assume that…

A: Government expenditure: Government expenditure is the amount of money spent by the government on…

Q: 7. An expansionary fiscal policy: (Select All that Apply) A. usually decreases a government budget…

A: As there are multiple different questions, solution is provided to the first question i.e. Q7.…

Q: (i) Explain the difference between the headline fiscal deficit and the primary fiscal deficit. Which…

A: (i) Difference between headline fiscal deficit and primary fiscal deficit (a) A headline fiscal…

Q: The budget deficit is calculated as government spending minus tax revenues. O A. False O B. True

A: As you have asked about 2nd question so I am answering that only. Budget: It is the plan of spending…

Q: Assume that the economy is in a recession and ere is a budget deficit. A strict balanced-budget…

A: Under the recession, the economy is below the full employment level or aggregate demand deficient in…

Q: The government budget is in DEFICIT when (T) - G > 0 Government expenditures (G) - Investment…

A: The budget is in surplus if revenue exceeds expenditure and it is in deficit if expenditure exceeds…

Q: Why did some governments feel that they had to introduce “austerity” fiscal policies soon after the…

A: A Fiscal Policy is an instrument of the government and reefers to the use of government spending and…

Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.