Q: Do treasury securities finance a federal budget deficit? If so would the government purchase…
A: Yes, federal securities finance a federal budget deficit.
Q: Discuss the difficulty in predicting the effects of discretionary fiscal policy.
A: Fiscal policy is the process through which a government modifies its spending and tax rates in order…
Q: how to reduce the debt gdp ratio for macro
A: The debt-to-GDP proportion is the measurement contrasting a country's public debt with its (GDP).
Q: What is the reason why fiscal policy should be in tune with monetary policy when the economy is in…
A: Fiscal policy can be defined as government policies and the spending pattern that the government…
Q: If tax revenues are lesser government expenditures in a year, the budget deficit would be negative.
A: Tax Revenue: Revenue that is generated against the tax is termed as tax revenue. Tax is an important…
Q: how discretionary fiscal policy fights recession and inflation
A: The fiscal policy of the government used as per the need of the government is discretionary fiscal…
Q: What is the reason why fiscal policy should be in tune with monetary policy when the economy is in…
A: Recession is a period of time in an economy when there is low or slow growth in economy wherein the…
Q: Will a discretionary fiscal policy action that involves spending $100 billion have the same overall…
A: The discretionary fiscal policy refers to changes in the tax rate or the level of government…
Q: What effect did the economic program have on the federal deficit?
A: ECONOMIC PROGRAM: Economic programs are the programs formed to improve the economy of the United…
Q: How can a government that isn't running a deficit still get itself into financial trouble?
A: When the government revenue is less than government expenditure it leads to deficit (Budget…
Q: Will consumers always spend the same percentage of any tax cut? Why might they spend more or less…
A: Answer - Consumers will not always spend the same percentage of a tax cut. This is mean that,…
Q: What are the three fiscal policy tools and how would each be used to counter a contractionary gap?
A: Fiscal policy tools are the revenue and expenditure tools of the government undertaken to accomplish…
Q: What is the difference between your running a budget deficit and adding to your own personal debt…
A: The budget deficit occurs when the spending outpaces the income level or revenue. The debt is…
Q: What is the importance of fiscal policy during times of economic recession?
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Assume today is October 20, 2021. In which quarter of fiscal year 2022 is the federal budget?
A: The federal budget is the government's estimate of revenue and spending for each fiscal year. The…
Q: Why Krugman believe that fiscal austerity in france or more generally in Europe would fail?
A: Fiscal austerity is used to define the steps or the direction taken by government which leads to…
Q: How much fiscal stimulus or restraint occurred between
A: Fiscal stimulus refers to the amount by which the structural deficit in a nation rises. It can also…
Q: when is the most appropriate time economically speaking for the federal budget be in a deficit?
A: A budget deficit is a situation when government spending exceeds the government's total income. A…
Q: Will a budget deficit be more expansionary if it is financed by borrowing from the Federal Reserve…
A: If the budget deficit is financed by borrowing from Federal Reserve, it will cause to increase the…
Q: Why is identifying potential opportunities, and managing within predictable limits for fiscal policy…
A: Fiscal policy is an important tool for dealing with the economy on account of its capacity to…
Q: List what specific, deliberate actions the federal government could take to enact expansionary…
A: Expansionary fiscal policy is aimed at increasing aggregate demand when the economy is in a…
Q: To enact Contractionary Fiscal Policy, the federal government must be running a budget ___________.
A: Contractionary fiscal policy is the point at which the public authority either reduces spending or…
Q: Explain why implementation lag for fiscal policy is longer than monetary policy.
A: Fiscal Policy Monetary Policy The fiscal policy is the use of government revenue (taxes or tax…
Q: Why do Republicans like tax cuts? Why are tax cuts a good thing? How does it affect the aggregate…
A: Answer - We can not generalise that Republicans like tax cut or not but long line of US presidents…
Q: Why might economists be quite concerned if the annual interest payments on the debt sharply…
A: The standard measure of value-added produced during a certain time by manufacturing goods and…
Q: What would happen to the stated sizes of Federal budget deficits or surpluses if the current annual…
A: Social Security Trust basically has two funds, the survivor's insurance, and the old-age insurance.…
Q: What is the difference between debt and deficit? Explain why there is no time lag for automatic…
A: Deficit is the difference b/w the amount that is received and what is spent by the government of a…
Q: Fiscal policy can be classified into which two groups
A: Fiscal policy alludes to the public authority activity to impact the market by making changes in tax…
Q: How would you explain Discretionary fiscal policy:
A: Fiscal Policy- It is the policy adopted by the government to bring economic stability by the help of…
Q: Is rising national debt is harmful to the U.S economy?
A: National debt refers to the total amount of financial borrowings by the people and the government of…
Q: When the economy is in a recessionary mode, what will likely be the actions by government using…
A: In recessionary mode, the government pursue the expansionary fiscal policy which has two tools which…
Q: What is supply-side economics? Does it oppose the Classical, Keynesian, or Monetarist theory? How…
A: Answer:- Suррly-side eсоnоmiсs is а mасrоeсоnоmiс theоry whiсh аrgues thаt eсоnоmiс grоwth…
Q: What is the difference between the national debt and the deficit?
A: Debt and deficit are two of the most well-known terms in all of large scale money, and they're…
Q: Why do government budget deficit grow during recessions?
A: Recession is refers to the situation of lower economic activity. During recession, the economic…
Q: How budget deficits and national debt are defined?
A: The budget deficits of government are a difference between the total spending of government and the…
Q: Why does a balanced budget increase in spending and taxes increase aggregate demand?
A: balanced budget increase in spending and taxes mean that, both government spending (G) and taxes (T)…
Q: Why tax cuts can increase both aggregate demand and aggregate supply?
A: In an economy, taxation refers to one of the government tools to influence a market situation and to…
How will cuts in state budget spending affect
federal expansionary policy?
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- Who has a better chance at getting a high paying job as an economic policy advisor in a republican administration?Who are the mercantilists? What policies did they advocate and how did they expect these policies to be achieved?Explain the problems associated with their policies.Which federal policies have contributed to these trends?
- What are the short-run and long-run implications when it comes to government spending changes versus tax changes?From a political economy perspective, why does fiscal policy have a built-in expansionary bias?if you were the leader of a country and you had control of fiscal and monetary policies, what would you likely do with the use of fiscal and monetary policies before the next general election?