The flow of funds into and out of the different sectors of the economy results to a particular sector facing deficit, surplus or balanced level of funds. * True or False?
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The flow of funds into and out of the different sectors of the economy results to a particular sector facing deficit, surplus or balanced level of funds. *
True or False?
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- Why it could be the case that after an initial sharp increase, the budget deficit could drop through time (as it did in the USA after the 2008 financial crisis)?110.) Which of the following is not a result of expansionary OMOs? Less investment spending. Decrease in the federal funds rate. Banks make more loans. None of the above.Why did the budget surpluses in 2000 and 2001 give way to a series of budget deficits beginning in 2002? Why did those deficits increase substantially beginning in 2008?
- Why would a central bank be concerned about persistent,long-term budget deficits?Assume the U.S. government was to decide to increase the budget deficit. This action will most likely cause __________ to increase. A. interest rates B. education level C. unemployment D. taxWhat will happen if a country uses money creation to finance a large and expanding national debt? Group of answer choices: a. Real output and employment will grow rapidly. b. Nominal interest rates will fall. c. The foreign exchange value of the currency will increase. d. The rate of inflation will rise.
- 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 policyThe things that can be learned from the 1997/1998 Asian crisis are... a) Closing small banks in a crisis can cause a domino effect b) Closing small banks in a crisis can save the economy from the domino effect c) Private debt is not a risk to the economy as a whole d) There is no correct answerWrite about one of the sources of capital receipts
- Will Increase in government spending financed by borrowing help promote a strong recovery from a severe recession? Why or why not?A country reduces its government budget deficit and also makes political reforms that lead people to believe this country’s assets are less risky. Given the combination of a reduced deficit and lower asset risk, what happens to the interest rate?An increase in the budget deficit is the result of: choose the correct answer(a) Expansionary monetary policy; (b) Contractionary monetary policy; (c) Expansionary fiscal policy; (d) Contractionary fiscal policy.