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- K Because in the government budget deficit increase the real interest rate, budget deficits can O A. decreases; increase OB. increases; increase OC. decreases; decrease O D. increases; decrease firm investment. 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.Predict on Ghana’s debt and its sustainability resilience for the next five years and do a graphical analysis of Ghana’s debt sustainability and its regional peers Discuss the other key macroeconomic variable aside the debt situation and project them on how Ghana’s situation may look like in the next 5 years Indicate the usefulness of Ghana’s debt sustainability resilience and how it will help Ghana’s for policy assuming you were an adviser to Ghana’s finance minister.The German government wants to decide about a stimulus package to combat the economicconsequences of the Corona pandemic. The government asks you to evaluate various policy options and give a recommendation thatkeeps the government deficit in line with the Maastricht criteria. Assume that the economy isfully described by the following equations (with C= Consumption, Y= Income, T= Tax).C = 14 + 0.8 (Y-T)T = 0.33YInvestments are 100 and government expenditures are 350.Option 1: A reduction of value added tax, reducing the tax rate from 33% to 30%.Option 2: Like option 1 a reduction of the tax rate to 30%, but additionally a subsidy forbuying cars that would increase government spending by 20.Calculate equilibrium income and budget surplus for the current state of the economy and forboth options. Are these options in line with the Maastricht deficit criteria
- QUESTION : Discuss the impact of fiscal stimulus on the business fixed investment and residential investment **quite big mark please explain, and situation is in malaysiaExpansionary Fiscal Policy and Flexible ER with perfect capital mobility in short run and long run. Explain.Expansionary Fiscal Policy and Fixed ER with perfect capital mobility in short run and long run. Explain.
- COURSE: MACROECONOMICS - FISCAL BALANCE The government of country X, faced with a fiscal deficit, proposes an increase in public spending (G) but which further increases the country's public debt. To justify this action the president argues that they are seeking to boost the economy which will increase the country's GDP allowing to collect significantly more money than initially spent, finally improving the situation of the fiscal coffers. Is this statement correct? Does the government have knowledge of economics?1. An increase in the budget deficit is the result of: (a) Expansionary monetary policy; (b) Contractionary monetary policy; (c) Expansionary fiscal policy; (d) Contractionary fiscal policy. 2. Company tax is a: (a) Progressive, direct tax; (b) Progressive, indirect tax; (c) Proportional direct tax; (d) Regressive indirect tax. 3. In the base year, a country produced 50 units of output at a price of R6,00 each for a nominal GDP of R300. This year it produces 60 units of output at a price of R8,00 each. What is the percentage change in real GDP since the base year?(a) 5%; (b) 10%; (c) 20%; (d) 15%. 4. Which of the following statements about Fiscal Policy is INCORRECT?(a) In order to combat inflation, the South African Reserve Bank must apply a contractionary fiscal policy;(b) A contractionary fiscal policy can result in higher levels of unemployment; (c) Expansionary fiscal policy will increase the budget deficit; (d) The application of fiscal policy will have no effect on…19. Gross investment is the total amount spent on purchases of new capital and on replacing depreciated capital. True or false 21. Fiscal policy has important effects on the level of employment, nominal GDP and on aggregate supply, known as secondary supply effects. True or false 23. An increase in government spending is an expansionary fiscal policy. True or false
- 36) An automatic fiscal stabiliser is A) a monetary or fiscal policy that aims to smooth out the business cycle. B) the tendency for inflation to fall as unemployment rises. C) a tax or form of government expenditure that has the effect of reducing the size of the multiplier. D) the tendency for exchange rates to adjust automatically to changes in the demand and supply of foreign currencya) how can a government correct those those following issues which arose due to covid-19? (using governemnt policies) i. inflation ii. disruptions in the labour market, (unemployment) iii.the disequilibrium of demands and supplies iv. economic fiscal deficits.How does the growing national debt impact minimum wage and the future population? As national debt grows beyond $21.5 trillion dollars how will it further impact th economy for the future generations. Questions like: Is the minimum wage going to drop further, are the number of jobs that can provide benefits like insurance going to be affected? Are things like rent going to rise further in cities like New York, Chicago and more making it harder for middle class to live there?