Using a graphical analyses explore the consequences for a hypothetical developing economy, if the the rate of borrowing to fund a fiscal deficit is growing annually at a faster rate than GDP.
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Using a graphical analyses explore the consequences for a hypothetical developing economy, if the the rate of borrowing to fund a fiscal deficit is growing annually at a faster rate than
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- Explore the consequences for a hypothetical developing economy, if the the rate of borrowing to fund a fiscal deficit is growing annually at a faster rate than GDP. In your answer, use hypothetical numbers and percentages, include a graphical analyses.Examine the consequences for a hypothetical developing economy if the rate of borrowing to fund a fiscal deficit is growing annually at a faster rate than the GDP. Include a graphical analyses using the below hypothetical numbers and percentages. GDP = R1000 Fiscal Deficit = R1200 GDP is used to settle / pay for fiscal deficits. Therefore R1000 - R1200 = R200. This implies that the deficit keeps on growing. Remember the GDP equation and the impact of imports and exports.Sketch a diagram of how sustained budget deficits cause low economic growth.
- What happens to the following variables during an expansion? a. government budget deficits (surplus)According to MMT : Group of answer choices a. none of the above b. Government deficits are always a good thing c. The government should print money to finance deficits d. all of the above e. Government deficits are never inflationaryWhen are larger deficits desirable?
- What is a fiscal policy tool used to stimulate economic growth during a recession? A. Increasing government spending B. Reducing taxes C. Selling government bonds D. Reducing government spendingIf tax cuts don't cause enough economic growth, we might also need to reduce expenditures to reduce the deficit. Explain?In view of the large adverse impact of COVID-19 on the world economy, many governments have implemented expansionary fiscal policy. Together with a decrease in tax revenues, the governments have sufferedlarge deficits. How does a government deficit affect the interest rate, the quantity of loanable funds and economic growth? Explain your answers with a diagram
- using macroeconomic issues, what are three ways national debt affect economic growth?Examine the consequences for a hypothetical developing economy if the rate of borrowing to fund a fiscal deficit is growing annually at a faster rate than the GDP. use hypothetical numbers and percentages.From the data given below calculate the revenue deficit?