One objection to deficit spending is that it increases the demand for loanable funds thereby putting upward pressure on interest rates that crowds out private investment spending thereby lowering future U.S. growth.                           (1) What is the general level of interest rates in 2020?

Q: Question: State the macroeconomic effects of budget deficit

A: Macroeconomy is that part of economics that deals with the economy as a whole. It covers the…

Q: 5 Question 15 Which of the following is not a possible cost of South Africa having sizeable budget…

A: The budget deficit is the difference between the government expenditure and revenue. The government…

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Q: Real-Time Data Analysis Exercise In 2020, government spending in the U.S. was $6.55 trillion, and…

A: The government deficit=(government expenditure) -(tax collection)

Q: Question 1: The strategies like reduction in taxes and government budget deficit will increase the…

A: Investment can be increased substantially by adopting any of the following two strategies: Reduction…

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: more debt every year while its output is greater than potential output and its economic growth is…

A:

Q: 8. Agreement and disagreement among economists Suppose that Edison, an economist from a research…

A: Answer -

Q: What are the major functions of a government budget? Discuss “revenue” and  “development” budgets…

A: A government budget is a statement of its planned expenditures and revenue receipts for a given time…

Q: The U.S. gross federal debt was $5,674.2 in 2010 and $14,025.2 billion in 2020. The GDP was $9,872.9…

A: Answer;

Q: 4. If tax revenues are lesser government expenditures in a year, the budget deficit would be…

A: Budget Deficit occurs when in an economy, government expenditures are more than government revenues…

Q: 16. Which of the following statements is (are) correct? I. If the current inflation rate is…

A: A continuous increase in the general price level is referred to as inflation.

Q: Government budget and national saving: 1. Suppose that GDP equals $10 trillion, consumption equals…

A: Given the information-: GDP = $10 trillion, Consumption is equal to the $6.5 trillion, Government =…

Q: What measures and interventions can a government take to reduce a budget deficit?

A: The budget deficit is the macroeconomic problem which when aggravated may lead to the one of the…

Q: 4. What is a government budget deficit? How does it affect interest rate, investment, and economic…

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

Q: ree budgetary solutions you

A: ​A budget deficit occurs when spending tends to exceed level of income.

Q: Current expenses exceed the amount of income collected via normal operations in circumstances where…

A: Budget deficit is calculated by subtracting total expenditure from total revenue. If the sum, is…

Q: Assuming taxpayers do not anticipate an increase in the future market rate of interest due to the…

A: An increase in budget deficit increases government borrowing for deficit financing. This increases…

Q: a) consumption and current saving. (b) Determine aggregate private saving, aggregate consumption in…

A: A) Each consumer’s current consumption and current saving. There are two sorts of individuals,…

Q: 5. Public debt is the borrowing taken by when government revenue is less than spending. a. the…

A: public debt is the amount of borrowing that is made to fill up the gap between revenues and…

Q: China's government debt is $350 billion at the end of 2019 with a 2% inflation rate during the year.…

A: GDP refers to the total value of all the final goods and services that produced within the country…

Q: # 5: What do you think the obstacles will be to reducing projected deficits over the long term?…

A: In monetary terms, a deficit happens once expenses exceed revenues, imports exceed exports, or…

Q: 1. Since 2010, the UK government has made some progress in reducing the budget deficit by…

A: A government generally regulates the market through fiscal measures, the measures can be of two…

Q: the equilibrium quantity demanded for fhnancial capital by 10 2.51% of GDP. Show the effect this…

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Q: A timely topic considering the impact of the pandemic crisis.  Government at all levels must submit…

A: A government budget is prepared by the government to present the expected revenue and spending of…

Q: esults in a reduction in the budget deficit. This fiscal policy action results in an increase in the…

A: A situation that occurs when expenses tend to exceed revenues is known as a budget deficit. This…

Q: Homework - Please give explaination for correct option. The US national debt is approximately $23.2…

A: Given:P=$23,200 billionr=4%=0.04n=40 years (2059-2019)

Q: If a country runs many consecutive budget deficits but the level of is high when compared to the…

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

Q: Question 7: Suppose that the primary deficit (G-T) is zero in the economy. Suppose further that the…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: 07. What factors make an expansionary "stimulus" fiscal policy effective?     a) A government…

A: Fiscal stimulus can raise output and incomes in the short run. To have the greatest impact with the…

Q: Suppose that Edison, an economist from a research institute in Texas, and Hilary, an economist from…

A: The disagreement is because of the different opinions about Laffer curve. Laffer curve is given by…

Q: Essay 3 .The result of government deficits is that less savings are available to firms for…

A: Answer: Introduction: Government Deficits: Government deficit or budget deficit refers to the excess…

Q: Problem 1 1. Total budget deficit is equal to: O Frictional deficit plus cyclical deficit Structural…

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

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: If a country runs many consecutive budget deficits but the level of is high when compared to the…

A: In an economy, government budget deficit has a significant impact on its domestic as well as…

Q: The Swedish Fiscal Policy Council discusses public debt policy in a low interest environment in…

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: What budget changes would have to occur in order to lower an annual deficit? Annual expenditures…

A: A government budget is a statement of its planned expenditures and revenue receipts for a given time…

Q: explain deficits,output stabilization and the cyclically adjusted deficits

A: Budget-deficit is a term that describes the excess of government expenditure/spending including the…

Q: 2) As an economist, identify and justify economic and fiscal policy measures that should be taken by…

A: The LM curve shows the positive relationship between interest rate and output. It means the increase…

Q: Analyze the effects of a government budget deficit.

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Q: ught Ihto balance by reducing grants to provincial governments. 4. High and rising health care…

A: 4) Taxes are unintended fees placed on individuals or companies and levied by a government agency –…