The following factors could lead to an Increase on the Supply of Bonds (shift down ofsupply curve) EXCEPT:An Economic ExpansionO Increase in Government Deficit.Increase in Expected Inflation.OIncrease in return on Bonds.nomicExp

When there is an economic expansion prospects are good for the economy and specially for businesses,…

Answered: The following factors could lead to an…

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter13: Federal Deficits, Surpluses, And The National Debt

Section: Chapter Questions

Problem 13SQ

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The total value of all bonds issued by the government of a country constitutes: A. the net national income of the country. B. the GDP gap. C. the national debt of the country D. A recessionary gap. E. an inflationary gap.
I would llike an answer for Question B please: Discuss the likely effects of an increase in uncertainty about cash flows on the responsiveness of a firm's debt level to changes in the interest rate on debt.
Over the past year, Ionia's money supply decreased by $1 billion, $3 billion in bonds were sold to the public, an unused military base was sold for $5 billion, and the government spent $20 billion. Ionia had a budget surplus. deficit. Determine the amount of Ionia's budget deficit or surplus. $_________billion Determine the amount of Ionia's tax revenue for the year. $__________billion
If the real interest rate on government bonds is three percent, real GDP grows at one percent, the current debt-to-GDP ratio is forty percent and the primary budget deficit as a percentage of GDP is two percent, then the debt-to-GDP ratio will rise in a year by _____ percentage points. a. 82 b. 0.82 c. 2.8 d. 8.2 e. 0.28
If the debt to GDP ratio ________, or if the debt to broad-money-supply ratio _______, Exter’s Pyramid becomes __________, and the economy becomes _________. increases; decreases; less top heavy and more stable; less fragile because debt is controlled. decreases; increases; top heavy and more unstable; fragile as debt becomes unsustainable. increases; increases; top heavy and unstable; fragile because debt becomes unsustainable. decreases; decreases; less top heavy and more stable; more fragile and debt-ridden.
Q)Which of these methods of government deficit finance is MOST likely to crowd out private investment? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices selling bonds to the public selling bonds to the Social Security Administration selling bonds to the Federal Reserve selling offshore oil leases
Calculate the value of interest payment when the primary deficit is given as $9932billion and the fiscal deficit is given as $11888 billion
“Crowding out” refers to the situation in whicha. borrowing by the federal government raisesinterest rates and causes firms to invest less.b. foreigners sell their bonds and purchase U.S.goods and services.c. borrowing by the federal government causesstate and local governments to lower theirtaxes.d. increased federal taxes to balance the budgetcause interest rates to increase and consumercredit to decrease.
Determine the state of the budget (in deficit, in balance, in surplus), if: Government spending on the economy is 5000 monetary units, while rate of taxes incomes is 7000 monetary units. Public transfers are purchased in the amount of 1100 monetary units. The national debt is 9000 monetary units, so the State spends 10% per annum to pay this loan off.
Please no written by hand solutions Cody Sebastian, of Lubbock, Texas, earns $56,000 a year. He pays 18 percent of his gross income in federal, state, and local taxes. He has fixed expenses in addition to taxes of $2,000 per month and variable expenses that average $1,400 per month. What is his net cash flow (surplus or deficit) for the year? Enter negative values with minus sign. Round your answer to the nearest dollar. $ Cash surplus or deficit.
A- Suppose potential GDP is $20 trillion. If the economy produces at potential, then the government budget deficit is $1 trillion. If actual GDP is $19 trillion, the government deficit is $1.25 trillion. The cyclically adjusted budget deficit is ___ trillion (do not enter a ‘$’ sign Assume an interest rate of 5%. What is the maximum amount an individual would be willing to give up today in exchange for $1, paid 30 years in the future? Suppose the government has promised to pay $100 billion dollars in benefits 10 years from now. Assuming an interest rate of 4%, what is the present discounted value (PDV) of the obligation? Answer in billions of dollars, rounded to two decimal places.
1. Austria runs a gov budget surplus, and it has a small debt to GDP ratio. This year, however, Austria is running a government budget deficit, and it is financing that deficit by selling government bonds.This year's government budget deficit is causing interest rates to (increase / decrease/ remain the same /change ambiguously) and the debt to (increase/ decrease /remain the same/ change ambiguously).2. Austria is predicted to return to a surplus position next year. If it is successful, interest rates will (increase / decrease/ remain the same /change ambiguously) and the debt will (increase /decrease/ remain the same/ change ambiguously).

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The following factors could lead to an Increase on the Supply of Bonds (shift down of supply curve) EXCEPT: An Economic Expansion O Increase in Government Deficit. Increase in Expected Inflation. OIncrease in return on Bonds. nomic Exp