Is a high national debt a problem for future economic growth? What is the ideal debt-to-GDP ratio?

Q: Discuss in detail the role of fiscal policy in terms of stabilization under Classical and Keynesian…

A: Classical view The classical policy suggests that if expansionary fiscal policy is combined with a…

Q: Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion…

A: a) Absolute value of public debt = Deficit in year 1 + Deficit in year 2 - Surplus in year 3 +…

Q: According to the traditional view on government debt, a tax cut without a cut in government…

A: The governments use fiscal and monetary policies to achieve certain economic goals. The fiscal…

Q: Which of the following options do you favor for resolving future social security deficits? What are…

A: Options that favors resolving future Social Security deficits are:a)Cutting Social Security benefits…

Q: I'm studying for an exam and this question is honestly going right over my head. I would love a bit…

A: Prior to Covid-19 and resulting financial crisis the US government was already in deficit spending…

Q: Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion…

A: In year 1, Budget deficit = $40 billion  in year 2, budget surplus = $10 billion  In year 3, budget…

Q: Now, Congress steps in and insists that the policy be "deficit neutral" so that the government…

A: The tax is an important fiscal policy which deals with the government expenditure. The government…

Q: gov of Zimbabwe implements reforms which cause the growth rate of the economy to increase, and are…

A: As the growth rate of economy increases, the consumption activities and investment activities in the…

Q: Consider the U.S.’s government deficit. Recently (perhaps excluding 2020 and government spending in…

A: Generally a government deficit can be defined as the shortfall in government's income compared with…

Q: Let’s assume that in 2017, Sweden’s government had no debt and held $120 billion dollars. To…

A: Given that the government had excess revenue $ 120 billion in year 2017. During 2018 the expenditure…

Q: Nations with very high rates of inflation( over 100% per year) typically a) have zero national…

A: Inflation is the rise of price of goods and services used by consumer. Inflation rate is the…

Q: The U.S. government's total debt consists of borrowing from both inter-governmental agencies and…

A: In the U.S the total debt is owed by the federal government of the U.S to treasury security holders.…

Q: Which statement is a major consequence of high government budget deficits? a) All else held…

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

Q: Using three key points, critically analyze how national debt can affect the economic prosperity of a…

A: National debt is the cumulative debt of the public sector yet to be repaid. National debt ahs a huge…

Q: Suppose the US Federal Government decides to engage in deficit spending whereby it increases its…

A: A budget deficit may result in public sector debt, and also a rise in the national debt.

Q: Which of the following statements about government deficits is correct? a. Deficits should occur…

A: Deficit occurs when the government expenditure tends to be larger than the income of government.

Q: )Which of the following are many managers concerned about as a result of increased government…

A: When the authorities tend to play an important role through providing more facilities is known as an…

Q: Which of the following statements about how fiscal policy should most appropriately be used in a…

A: The fiscal and monetary policies are used by the governments to achieve certain economic goals. The…

Q: Countries with high levels of debt-to-GDP ratios are poor countries and that countries with low…

A: A country with a high debt-to-GDP ratio shows the GDP of the nation is insufficient to pay back…

Q: Take a country that has the debt-to-GDP ratio equal to bo. Suppose the real interest rate on…

A: Gross Domestic Product (GDP) is defined as the monetary value of all the final goods and services…

Q: Which of the following policy combinations would cause a rise in the government budget deficit?…

A: Fiscal measures is the utilization of government spending and tax collection to impact the economy.…

Q: Which of the following will cause a reduction in the debt-to-GDP ratio? A) an increase in the real…

A: In an economy, the debt-to-GDP ratio refers to the measurement of an economy's total debt or…

Q: Trace the cause-and-effect chain through which financing and refinancing of the public debt might…

A: If the government borrow money for financing and refinancing of public debt, the real interest rate…

Q: The following budget data are for a country having both a central government and provincial…

A: The primary deficit is the contrast between the financial deficit of the current year and the…

Q: Do I have this queshtion right I think its positive. I'm not sure if I'm correct.

A: Economic growth.From the given graph, if these countries have gross government debt is excess of…

Q: Suppose that a country has no public debt in year 1 but experiences a budget deficit of $ 40 billion…

A: Public debt is the amount of money borrowed by the government. It is the amount that the country…

Q: • For a country with a given debt/GDP ratio at time t-1, if the growth rate of GDP was less than the…

A: The debt-to-GDP ratio refers to the amount of public debt of a country as a portion of its GDP. For…

Q: Describe the roles of government bodies that determine fiscal policy. Explain fiscal policies’…

A: The role of government bodies that determine fiscal policy are as follows: The government fiscal…

Q: Multiple Choice Question....   Which statement is a major consequence of high government budget…

A: Budget deficit refers to a situation when the expenditure of the government exceeds its revenue.

Q: Public debt is the sum of deficits and surpluses (negative deficits) over time. Suppose that a…

A: Real GDP is the inflation-adjusted measure of the value of all goods and services produced in a…

Q: If fiscal budgets don’t need to balance, what should we be trying to balance in an economy? Explain…

A: Since you have asked multiple questions we will answer the first three questions for you. Fiscal…

Q: government expenditure towards infrastructure increases and is deficit financed, then: a. The debt…

A: Government spending or use incorporates all government utilization, investments, and transfer…

Q: Public debt is the sum of deficits and surpluses (negative deficits) over time. Suppose that a…

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

Q: Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion…

A: Public debt, year 4($ billion) = Public debt year 1 + Budget deficit, year 2 + Budget deficit, year…

Q: hich of the following policy measures is not discretionary? a. Income tax surcharges designed to…

A: In an economy, discretionary policy refers to the one that is implemented for a specific purpose or…

Q: The current market rate of interest is 10 percent. At that rate of interest, businesses borrow $300…

A: Demand curve for the loanable fund shows the level of demand for loan at different interest rate.…

Q: )Which of these methods of government deficit finance is MOST likely to crowd out private…

A: Government budget deficit: - Government budget deficit is the condition in which the government…