Q. 2 Explain the debt structure for a developed country such as United States and explain why developing countries with lower level of debt to GDP have debt problems whereas U.S. with higher level of debt to GDP doesn’t have a debt problem?

Q: A government finances all of its debt through 1-year treasury bonds. This government is able to…

A: Debt-to-GDP ratio is defined as a metric which compares a nation's public debt to its GDP. It…

Q: What are the consequences of a high Debt to GDP ratio for the economy?

A: The debt-to-GDP ratio is the ratio of a country's government debt and its gross domestic product…

Q: Public deficits arise whenever government expenditure exceeds government receipts. This phenomenon…

A: Public Finance is referred to as the study of a governments activities, which includes spending,…

Q: 1. The economy starts out with a balanced Federal budget. If the government opts to implement…

A: Fiscal policy refers to the policy of the government to control the money supply in the economy.…

Q: In a situation of declining GDP, rising unemployment, and a budget that already has a small deficit,…

A: GDP refers to the measure of the welfare of the economy where it is the value of all the finished…

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

A: Given the budget deficit in the first year = $40 billion The budget deficit in the 2nd year = 20…

Q: government starts off with a total debt of $4.0 billion. In year one, the government runs a deficit…

A: Government debt at the end of year 3 would be given as the sum of all three years of deficit or…

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: What is the difference between the US government debt and government deficits? Are they sustainable?…

A: In the United States, government, that us Congress,makes various rules and regulations, according to…

Q: Establish and explain the Debt-GDP ratio

A: The debt - to - GDP ratio is the metric contrasting the public debt of a country with that of its…

Q: Suppose that in 2016 the federal government spent $680 billion and collected $480 billion in taxes.…

A: The government budget gives the summary of the expenditure and revenues of the government. The…

Q: Suppose that in 2016 the federal government spent $730 billion and collected $480 billion in taxes…

A:

Q: A deficit caused by an increase in government spending needed to offset reductions in consumption…

A: A budget refers to a prediction of revenue and expenditures for a certain time period that is…

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: What is the difference between your running a budget deficit and adding to your own personal debt…

A: The budget deficit occurs when the spending outpaces the income level or revenue. The debt is…

Q: Distinguish between deficit and debt.

A: Deficit refers to the outflow of money that is greater than the inflow of money. For example, a…

Q: Uruguay is a small country in Latin America. GDP is 100. Debt is 100. Government spending on goods…

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

Q: The table shows the tax revenues and the outlays of a nation at each level of real GDP. What is…

A: Tax revenue is the earnings that authorities receive from taxes. The main element of state earnings…

Q: The following calculations help you see how the ratio of debt to GDP changes from one year to the…

A:

Q: (Government Debt) The U.S. Treasury reports the budget deficit or surplus of the federal government.…

A: Countries that can counter and affect a budget deficit, that is likely to promote and bring in the…

Q: how much is the current primary deficit?

A: Primary deficit = fiscal deficit - interest payments Primary deficit = government expenditure (…

Q: Which of the following, regarding debt and growth, is false?    a. If there is no (nominal) GDP…

A: a-Central banks can support development by cutting loan costs, which (in principle) prompts simpler…

Q: As long as tax rates are not very high, a decrease in tax rates will tend to   a. increase the…

A: Budget deficit:-  Budget deficit happens when spending of government is more than the revenue earned…

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: Use the following table to answer the next eight questions, where GDP = gross domestic product.…

A: Answer: Average yearly budget deficit=Budget deficit2011-Budget deficit200110 The average yearly…

Q: In 2016, the policy makers of the of Eastlandia projected the debt-GDP ratio and the ratio of the…

A: Given: Real GDP is currently = $1,000 billion per year Real GDP is expected to grow at = 3% per year…

Q: A sovereign debt crisis is most likely to occur for which type of country? a large, rich country a…

A: Answer: d (a small, poorer country with a lot of debt) Explanation: A small and poorer country with…

Q: Which of the following is a TRUE statement about arguments for and against requiring a balanced…

A: The federal budget is the government's forecast for income and expenditures for each fiscal year.The…

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: In 2010 the Greek government had to inform the European Commission on how it would control its…

A: The Greece crisis was one of the biggest financial rescue of a bankrupt country. In 2009, the…

Q: What are the three general options available to the U.S. to begin to reduce the relative size of our…

A: National debt occurs when US government is spending more than it is able to earn. It is the level of…

Q: A recent New York Times article stated: "Recent debates in the House considered tax cuts and tax…

A: The fiscal policy used the tools such as government spending and taxes to ensure that there is…

Q: Calculating the debt to GDP ratio Suppose the following statistics characterize the financial health…

A: Financial panic is widespread when a government defaults on its debts, both locally and…

Q: The government has many tools at its disposal to help create stability for an economy. Explain the…

A: The use of government spending and taxation for influencing the economy is known as fiscal policy.…

Q: In 2010, the country of Lykesville had a balance budget, no debt, and its GDP was $31500. In 2011,…

A: Balanced budget refers to country's budget when both expenditure and revenue of government are…

Q: Only one of the following is a true statement. Which one? Group of answer choices Japan’s debt/GDP…

A: The debt to GDP ratio shows that how much debt is being used by the government relative to GDP size.…

Q: Explain how a budget deficit arises and what actions governments must take in this circumstance and…

A: A government budget is a paper prepared by the government and/or other political body that presents…

Q: Suppose the following statistics characterize the financial health of the hypothetical economy…

A: Given details of 2017:- GDP is $ 200 billion. National Debt is $ 300 billion. Budget Deficit is $ 8…

Q: Crowding Out and Capital Formation) In earlier chapters, we’ve seen that the government can try to…

A: