Other things equal, when the government runs a large budget deficit, it _____ national saving and thereby _____ capital formation and productivity growth. a) increase;increase b)decreases;decreases c)increase;decreases d;decreases;increases

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A: Answer is "Animal spirits"

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A: The financial crisis is a situation in the economy in which the price of asset decline steeply,…

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A: The relationship between capital, savings and population is explained by the Solow growth model

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A: Answer - "Thank you for submitting the questions. But, we are authorized to solve one question at a…

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A: Since posted multiple questions , we will answer only first one.

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Q: explain the  three way of how a financial crisis could impact economic growth.

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

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A: Answer a) GivenInvestmtment = 2GDP = 14 so, Investment Rate = Investment/ GDP…

Q: LOANABLE FUNDS Based on this model, the budget deficit leads to in the level of investment and in…

A: PLEASE FIND THE ANSWER BELOW.   BUDGET DEFICIT: A budget deficit occurs when expenses exceed…

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Q: QUESTION 7 Suppose that an economy is characterized by the following production function: Y= 3/K/N…

A: 7.

Q: Currently, the US has a total consumption of $12 trillion, saving of $6 trillion, tax revenues of $5…

A: Answer -

Q: A country experiences economic growth if Question 53 options: a) real GDP increases b)…

A: A country experiences economic growth means a increase in the real value of goods and services…