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Show and explain the effects of government borrowing regarding Ricardo’s Equivalence Theorem and give the main arguments against this theorem
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- Explain the effects of government borrowing regarding Ricardo's Equivalence Theorem and give the main arguments against this theorem. Thanks.investigate how the assumption of a binding borrowing constraint can lead to a violation of Ricardian Equivalence. Your analysis should be supported by a clearly labelled diagramPlease help me find what are theories of Public Borrowing, starting from the Classical Theory of Public Debt (Mercantilism) up to the present. Kindly provide a comprehensive explanation of each as well as your references. Thank you
- External debt of the United States refers to O The ownership of nongovernment debt by the government. O The debt of nongovernment organizations. O Combined foreign debt held by sources outside the U.S. government. D O U.S. government debt held by foreigners.Zakah is a unique Islamic institution, incomparable to the tax/expenditure structure of other political economies. Comment on the statement by highlighting its peculiar characteristics.1- Can you explain the benefit principle and ability to pay approach with regard to tax equity. Which approach do you think is appropriate regarding tax equity (fairness) ? And why? 2. Can you explain the effects of government borrowing regarding Ricardo’s Equivalence Theorem and give the main arguments against this theorem. Thank you very much.
- 1 a- Why do you think we should use taxation as a redistribution tool in a country? b- Show and explain the effects of government borrowing regarding Ricardo’s Equivalence Theorem and give the main arguments against this theoremDescribe alternative forms of capital inflow to finance external deficits and explain why these methods were used in different times.Discuss thoroughly two of the principles often used inevaluating tax policy: ability to pay (includehorizontal and vertical equity), and the benefits principle. Canthese principles typically be satisfied simultaneously? Why or why not? Provide an example of a tax policy orinstrument which primarily emphasizes the “ability-to-pay”principle and also an example which primarily emphasizes the“benefits” principle.
- Share an example illustrating how government borrowing today can bring benefits to future generations. Consider long-term investments, infrastructure development, or education initiatives that can enhance the future economy and well-being of the next generation.A) investigate how the assumption of a binding borrowing constraint can lead to a violation of Ricardian Equivalence. Use a diagram (with explanation) to support your answer.Suppose that the compensated elasticity of labor supply with respect to the wage is zero. On efficiency grounds, what are the consequences for the optimal choice between debt and tax finance?