and future updates?DownloadDon't show againnay be a victim of software counterfeiting. Avoid interruption and keep your files safe with genuine Office today.2. What are the budget revenues for a government to finance government spending?Explain why money printing is not desirable instrument to finance budget deficit?

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

Answered: 2. What are the budget revenues for a…

2. What are the budget revenues for a government to finance government spending? Explain why money printing is not desirable instrument to finance budget deficit?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter31: The Impacts Of Government Borrowing

Section: Chapter Questions

Problem 18CTQ: The U.S. government has shut down a number of times In recent history Explain how a government...

See similar textbooks

Related questions

Q: 1. Using the chart above, write a short description highlighting positive and negative indicators of…

A: Considering the given forecasts, the only positive is that we see a decline in inflation from 2.6%…

Q: it borrows money from the public by issuing bonds. interest payments on the existing debt increase.…

Q: Explain why fiscal policy actions typically work with a lag

A: The influence that the govt has on the economy via the use of taxation and expenditure is referred…

Q: 2. When the government runs a fiscal deficit, it finances it by: a. issuing stocks…

A: When a government's income falls short of its expenditures, a fiscal deficit results.A government…

Q: Which statement best describes some of the components of externally held debt? - Public debt held…

A: If we talk about internal debts then, Public debt held by U.S. banks, firms, and individuals. But if…

Q: Explain how a larger government budget deficit increase the magnitude of the crowding-out effect?

A: Fiscal policy refers to the changes in federal government purchases and taxes. The government…

Q: 1. How did U.S. government responded to global health pandemic? What kind of steps have they taken?…

A: Hey, Thank you for the question. As per our honor, code we can answer only first three sub-parts of…

Q: 12. What is the purpose of the following fiscal policies? a. Contractionary b. Expansionary fiscal…

A: In economics and political science, fiscal policy is the use of government revenue collection and…

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: 4. Which factor is NOT a tool of fiscal policy? (Select All that Apply) A. changing the tax rates B.…

A: As there are multiple separate questions answer is provided to the first question i.e. question 4.…

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: 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: a.) Suppose that South Pangean debt is $200 million and the interest rate it pays on that debt is 6…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Q: Why should federal debt be thought of differently than household debt?

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

Q: 1. a) Explain what crowding out is and why it reduces the impact of fiscal stimulus. b) True or…

A: The phenomenon, whereby increased government expenditure may lead to a squeezing of private…

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: 1. The existence of budget deficits must mean that the government is conducting an expansionary…

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

Q: Homework - Please give explaination for correct option. The US national debt is approximately $23.2…

A: Given:P=$23,200 billionr=4%=0.04n=40 years (2059-2019)

Q: 4) Why should the federal government not be required to balance its budget while state and local…

A: A budget is a financial plan for an economy. the budget is the plan which is made or drawn for a…

Q: Problem 1 1. Total budget deficit is equal to: O Frictional deficit plus cyclical deficit Structural…

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

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: 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: a. The government's budget constraint shows that total government expenditures must be equal to the…

A: "Since you have asked multiple parts, we will answer only first two parts for you. If you want other…

Q: Explain how a larger government budget deficit increase the magnitude of the crowding-out effect?

A: government budget deficit means that government's expenditure is more than the government's revenue…

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: 1. How does the evolution of the debt-to-GDP ratio 2 depend on g (the growth rate) and i (the…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

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: 10

A: Given, Increase in government spending = 100$ Money multiplier = 3 Tax rate = 10 %

Q: 2) For both political and macroeconomic reasons governments are often reluctant to run budget…

A: Given information Aggregate demand function Y=C0+C1(Y-T)+I+G C0---- autonomous consumption C1---…

Q: 1. Explain the relationship between the effectiveness of monetary policy and the interest elasticity…

A: Effectiveness of monetary policy: Monetary policy is very effective when it suits the countries…

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: why did greece have a debt crisis in 2010 - 12 with public debt around 170% of GDP while Japan has…

A: The Greek government-debt crisis was the sovereign debt crisis looked by Greece in the repercussions…

Question

and future updates?
Download
Don't show again
nay be a victim of software counterfeiting. Avoid interruption and keep your files safe with genuine Office today.
2. What are the budget revenues for a government to finance government spending?
Explain why money printing is not desirable instrument to finance budget deficit?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Based on the national saving and investment identity, what are the three ways the macroeconomy might react to greater government budget deficits?
In a booming economy, is the federal government more likely to run surpluses or deficits? What are the various factors at play?
How would you expect larger budget deficits to affect private sector investment in physical capital? Why?
When governments run budget deficits, how do they make up the differences between tax revenue and spending?
Explain whether or not you agree with the premise of the Ricardian equivalence theory that rational people might reason: Well, a higher budget deficit (surplus) means that Im just going to owe more (less) taxes In the future to pay off all that government borrowing, so Ill start saving (spending) now. Why or why not?
The U.S. government has shut down a number of times In recent history Explain how a government shutdown will affect the variables In the national Investment and savings identity Could the shutdown affect the government budget deficit?