Q: 1. If NX=0, then savings must be equal to invesment Select one: True False
A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…
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A: In the two period economy with government and lump sum tax, we have the following budget constraints…
Q: 3. Derive tne equations of IS curve, LM Curve, and find equilibrium income and int Trom this IS-LM…
A: Y=C+I+G C=c0+c1(Y-T) -c2r I=Io+a0Y -ar T=t0+t1Y G=G0 MQ=mY+m0-hr MQ=Mr=M
Q: In a binding situation,an increase in net taxes Select one: O a. causes the ADcurve to become…
A: Aggregate demand (AD) is defined as the total amount of commodities and services that is bought by…
Q: Which of the following is a main characteristic of direct finance? O a) Borrowers go directly to…
A: Direct Finance is referred to as the situation in which transaction between two parties is done…
Q: Suppose potential GDP is $20 trillion. If the economy produces at potential, then the government…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: QUESTION 38 Which of these features make it hard to predict the effects of discretionary fiscal…
A: In an economy, discretionary fiscal policy is the policy that is implemented to deal with the…
Q: Suppose an individual decreases their consumption in a year, resulting in more saving for and…
A: The consumption depends on the income of a person. Therefore, if the income rises then consumption…
Q: Under which condition can the government continue to accumulate debt? if it issues more bonds O ifit…
A: The debt of the government estimates how much the central government owes to its banks. The…
Q: d. Does the total flow of money out of house- holds-the sum of taxes paid and consumer…
A: The flow of money is understood in the concept of circular flow of income.
Q: Suppose the Bank o Englndwshes toresta ifiaton o ceses Bak Rate Whch of theflwing enswil n te artf…
A: Answer: Bank rate refers to the rate at which the central bank of a nation lends to the commercial…
Q: 4. Explain the effect of a discretionary cut in taxes of $40 billion on the economy when the…
A: please find the answer below.
Q: 34 64. If the marginal propensity to save (MPS) is small, O a. make the simple multiplier larger. O…
A: Multiplier =1/1-MPC or 1/MPS
Q: The table sets out the data for an economy when the government's budget is balanced. Real Loanable…
A: Crowding out manifests a situation where the investment by private sector gets hurt due to an…
Q: Suppose the government borrows funds to finance the purchase of state-of-the-art IT infrastructure.…
A: Here, it is given that government borrows funds to purchase state-of-the-art IT infrastructure.
Q: 40 20 O S100 200 300 400 s00 600 700 800 900 GDP Refer tethe diagram which Tis ta revenues and Gs…
A: A. We have, At actual employment level $200 billion Government Expenditure = 60 billion and Taxes =…
Q: Fiscal policy includes decisions about a) taxes, government spending, and government borrowing. b)…
A: Fiscal policy refers to the policy of this government of the country to control the money supply in…
Q: Crowding out occurs when expansionary fiscal policy leads to O a higher money supply and a reduction…
A: Answer- Need to find- Crowding out occurs when expansionary fiscal policy leads to Evaluating the…
Q: Problem : The Goods and Asset Market Equilibrium or IS-LM Equilibrium A. Given: C = 700 + .80 (1-…
A: C=700+0.80(1-t)Yt=0.25I=210-75iG=1000TR=100L=0.20Y-40iM/P=800 4. Now, tax rate (t) is increased to…
Q: The table given below shows an economy’s demand for loanable funds and the supply of loanable funds…
A: 1. If the government has a budget surplus of $1 trillion, then real interest rate will decrease…
Q: 4. Explain the effect of a discretionary cut in taxes of $40 billion on the economy when the…
A: A) Tax cut of $ 40 billion will increase disposable income and ultimately consumption. Propensity to…
Q: 2. Given: C = 250 + 0.8 Y I = 150 G = 300 TR = 100 NX = 100 t =0.25 i) Find the equilibrium level…
A: Hey, Thank you for the question. According to our policy, we can only answer up to 3 subparts per…
Q: In the figure, the DLF curve is the demand for loanable funds curve and the PDLF curve is the…
A: Loanable fund market determines the equilibrium interest rate through the forces of demand and…
Q: For the last time, consider the economy described above. You won't work directly with its numbers in…
A: Given; Government spending= $1000 Net taxes= $1500 Output=$8000 Consumption=$3500 MPC=0.8 And…
Q: a budget surplus of $50 billion more next year than this year. c) How does the elasticity of supply…
A: In the situation where the revenue from the tax in turn tends to be greater than the spending of the…
Q: To minimize GDP fluctuations, the government should run a budget in times of recession and a budget…
A: A budget surplus occurs when government tax revenue is greater than government spending Budget…
Q: Assuming a tax rate of 40 percent, compute thebefore-tax real interest rate and the after-tax…
A: A real interest rate is considered as the rate of interest that an investor or lender receives after…
Q: Describe a change in the tax code that mightincrease private saving. If this policy wereimplemented,…
A: The interaction between demand for loans and supply of savings helps in determining the real…
Q: Use the following statements to answer this question: I. Higher government deficits increase the…
A: The gap between the revenue earned by the government as taxes from the citizens and the cost…
Q: can you explain this for me? this is a true or false statement: "increasing welfare payments by…
A: The deficit is the situation where the country’s expenditure exceeds the country’s revenue.
Q: In contrast to the U.S. federal government budget, the budgets of most states (for example, lowa)…
A: In the United States, it can be seen that the government is decentralized among different stages…
Q: Complete the first row of the table with the quantity of burritos that can be bought with $300.…
A: Given the price of a Burrito in 2017 = $4 Total money available to buy the Burrito = $300
Q: 7). Spending promises made by govemments that are effectively a debt despite the fact that they are…
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: Assume that the government decreases its spending on discretionary budget programs. All else…
A: Assume that the government decreases its spending on discretionary budget programs.
Q: Refer to the figure below to answer the questions that follow. Surplus Deic GOP, Rea domestie et GOP…
A: In an economy, there are different ways to analyze the employment status based on different types of…
Q: Suppose the marginal propensity to save (MPS) is 0.25. If government expenditure goes up by $50…
A: Given; Marginal Propensity to Save; MPS= 0.25 Marginal Propensity to consume:- MPC=1-MPS…
Q: Which of the following statements are correct? The multiplier is: Select one or more: O a. the ratio…
A: "Correct answer is option b."
Q: Discuss the likely effects of an increase in uncertainty about cash flows on the responsiveness of a…
A: Introduction When the interest rate changes on debt, it will impact the net income of firms. It will…
Q: Refer to the Table. The government spending multiplier in this economy is Planned Output Net (Income…
A: Government Spending Multiplier = 11-MPC or 1MPS where MPC is the marginal propensity to consume MPS…
Q: For an economy, the following information is given to you. C = 0.7(1 - t)Y I= 300-0.02r M"/P 2+0.2Y…
A: The IS-LM (Investment Savings-Liquidity preference Money supply) model focuses on the equilibrium of…
Q: d. Does the total flow of money out of households- the sum of taxes paid, consumer spending, and…
A: The diagram in the question states how the income in an economy flows. The model is known as…
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- The PAYGO budget requirement means: a. that only programs generating revenues may be proposed for addition to the executive budget. b. that legislation that would increase entitlement spending must be accompanied with an increase in revenue or reduction in spending sufficient to cover the new entitlement spending. c. that debt refinancing must be approved by Congress. d. that no tax reductions are permitted.Public debt refers to the total amount of money owed by a government, which can be categorized into ____________, based on where the borrowing occurs, whether domestically or from foreign sources.A) Internal and external debtB) Short-term and long-term debtC) Secured and unsecured debtD) Productive and unproductive debt Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.The nation of Cantania regularly experiences changes in its national budget situation. In some years, Cantania operates with a budget deficit, while in other years it experiences a budget surplus. Please classify each of the possible consequences into the appropriate category of the budget circumstance most likely to cause them. answer bank in image Cantania experiences an increase in budget surplus Cantania experiences an increase in budget deficit
- Question 30 The largest portion of the federal budget is dedicated to discretionary spending. mandatory outlays. interest payments. tax collection. defense spending.Fiscal deficit indicates the total borrowings requirements of the government from all the sources. True / Falsewhen large governemnet budget deficits are financed by _____ hyperinflation occurs
- True/False # Government budget is a statement of actual receipts and payments of the government for the last financial year.The Malaysian government has introduced a new committee as a fiscal management reform initiative. This committee is known as ____. A.Public Mutual Committee / Jawatankuasa Awam Bersama B.Jawatankuasa Pemungut Hutang / Debt Collector Committee C.Public Account Committtee / Jawatankuasa Kira-Kira Wang Awam D.Debt Management Committee / Jawatankuasa Pengurusan HutangOver the past year, Ionia's money supply decreased by $1 billion, $3 billion in bonds were sold to the public, an unused military base was sold for $5 billion, and the government spent $20 billion. Ionia had a budget surplus. deficit. Determine the amount of Ionia's budget deficit or surplus. $_________billion Determine the amount of Ionia's tax revenue for the year. $__________billion
- "Deficit spending" refers to a situation where the government: A. Spends borrowed fundsB. Collects more tax revenues than it spendsC. Does not need to borrow fundsD. Is spending less than the year beforeTrue or False: a. Federal spending has grown substantially in recent decades. b. By world standards, the U.S. government controls a relatively large share of the U.S. economy. c. A majority of the federal government’s revenue is collected through personal income taxes. d. Education spending is slightly larger at the federal level than at the state and local level. e. State and local government spending has not risen much in recent decades. f. Defense spending is higher now than ever. g. The share of the economy going to federal taxes has increased substantially over time. h. Foreign aid is a large portion, although less than half, of federal spending. i. Federal deficits have been very large for the last two decades. j. The accumulated federal debt as a share of GDP is near an all-time high.12. Federal spending consists of: discretionary and mandatory spending. discretionary federal spending and debt payments. federal government purchases and transfer payments. Defense and social security program.