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- Private domestic saving provides the pool of funds available for Private domestic saving provides the pool of funds available for ... only financing government budget deficits putting under one's mattress Domestic investment and financing government budget deficits Consuming goods and servicesWhich of the following is not true of deficits? Supply-side policies contribute to budget deficits by cutting taxes. Demand-side policies contribute to budget deficits by increasing government spending. Deficits in any budget year are repaid in the next year's budget. Deficits result in increased debt.Following a tax cut by government, domestic investment will ________ and net exports will ________. increase; increase increase; decrease decrease; increase decrease; decrease
- The decline in real GDP from $1,000 billion to $500 billion considered a recessionEffect of fiscal and monetary policy on government budget deficit in ZimbabweIf the government is running a budget surplus, net export is 0. Then: i) private saving is greater than investment ii) private saving and investment are unrelated iii) private saving is less than investment iv) private saving and investment are equal v) private saving is zero
- Governments closely monitor the growth and contraction of their economies in order to manage the well-being of their citizens. When economies grow, well-being generally increases. When economies contract, the resulting reduced consumption usually causes hardship. To avoid contraction (also called recession), governments use fiscal and monetary policies to stimulate the economy. Fiscal policy operates based on government budgets, spending, and tax rates. Monetary policy is a tool of central banks and consists of changes to monetary supply and interbank lending rates. For this activity, What is today’s U.S. Federal Reserve Bank’s discount rate? When did the discount rate last change and why? Look for trends and predictions. What is the consensus? What about this consensus should make people feel secure or anxious?Disposable income is defined as national income - transfers + taxes. national income + transfers + taxes. national income - transfers - taxes. national income + transfers - taxes.The Coronavirus Aid, Relief, and Economic Security Act (CARES) helped to Multiple Choice control the rising inflation due to the COVID recession. increase indirect payments to consumers using tax cuts. widen the GDP gap by increasing the government's debt. shrink the GDP gap that emerged due to the COVID recession.
- Government consumption expenditures equal A. government outlays minus transfer payments. B. the government primary deficit plus net interest payments. C. government outlays minus net interest payments. D. government purchases minus government investment.Twin deficits refer to the combination of government budget deficit and trade deficit. The relationship between the 2 types of deficit is If the government budget deficit decreases, then the trade deficit would rise. An increase in the government budget deficit can lead to a greater trade deficit, but not always. During a recession, both deficits are likely to fall.Effect of fiscal and monetary policy on consumption in Zimbabwe
