When are larger deficits desirable?

Q: The following graph shows the market for loanable funds in Aperto, a large open economy. The…

A: When the government influence the economic outcome by changing the tax or its spending or both then…

Q: Governments across Europe have instituted austerity measures in an attempt to cut budget deficits…

A: Austerity measures The term austerity measures refers to the contractionary fiscal policies of the…

Q: Explain how, for a country with a high debt ratio, if the financial markets fear that the country…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Contingent Liabilities When you take out an ordinary student loan, it is usually the case that…

A: Contingent Liabilities: When the Occurrence of liability depends on some event; it is termed…

Q: Is economy in a better shape today than it was when the article was written? Refer to inflation,…

A: The American economy had its ups and downs.Since 1980's there was the cycle of business…

Q: If tax cuts don't cause enough economic growth,  we might also need to reduce expenditures to reduce…

A: Increase revenue or decrease spending are the two ways to reduce a budget deficit.  Tax cuts are…

Q: Would you please explain carefully several financial sources how the government financing its…

A: The gap between the government's total revenue and total expenditure is known as the fiscal…

Q: larger government fiscal deficit cause a larger international trade deficit

A: ‘Fiscal deficit’ refers to the difference between total income & expenditure of the…

Q: using macroeconomic issues, what are three ways national debt affect economic growth?

A: The production of the goods and services which is maintained on the sustainable basis is called the…

Q: How could the government lower the federal deficit?

A: A government deficit occurs when the spending (subsidies, pensions, infrastructure, and other…

Q: what are the conventional and unconverntional ways to reduce a deficit and what are the related…

A: Budget deficit happens when the income/revenue of the government falls short of its expenses.

Q: Briefly write about the implications of Primary deficit

A: First of all we must know no that what does it mean by primary deficit to stop whenever we calculate…

Q: The United States is currently running a budget deficit A True B False

A: The statement is True

Q: extent of 7%, calculate the real deficit in that country. Show your calculations.

A: Given - Nominal deficit  = $14 billion               Debt - $29 billion              inflation - 7%…

Q: What are primary deficit?

A: # In economics the term deficit means shortfaling.  This happens mainly when the expenses are more…

Q: How does tax cuts encourage saving and investment

A: Tax reduce the personal disposable income of an individual which leads to reductions in savings and…

Q: Conventional ways to reduce the deficit and the related problems

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…

Q: if us decides to cover the budget deficit through money creation, what are the impacts?

A: Budget deficit is a situation where expenditure is higher than income. But covering expenditure…

Q: How does the government budget deficit impact interest rates, investment, and economic growth?…

A: Government Budget deficit When spending surpass receipts, a budget deficit occurs, and it can be a…

Q: How does anemic economic growth contributes to national debt?

A: Anemic Economic growth: An anemic Economic growth can be defined as the one where the growth of the…

Q: How does tax cuts encourage savings and investment

A: Since there is inverse relationship between the willingness to work and tax rate.

Q: Suppose that Antonio, an economist from a business school in Georgia, and Caroline, an economist…

A: The disagreement between these economists is most likely due to Difference of opinion.

Q: What is the value of revenue deficit if total revenue expenditure is $23,000 and the total revenue…

A: The data presented in the question above is:- Revenue expenditure = $23,000 Total revenue receipts =…

Q: Deficit Vs. Debt

A: In economics, debt and deficit both terms are used as monetary aggregates because these are the…

Q: Please complete all parts of DFS technical question 4, Chapter 2, reproduced here. Assume GDP is…

A:

Q: What is the role of fiscal policy in developed countries? Give example

A: It is common knowledge that fiscal systems have a significant role in the effect of any economy.…

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

A: Govt in budget deficit means the total expenditure of the govt. is higher than the total revenue of…

Q: What is Internal Debt in the Philippines?

A: Answer -

Q: How will you identify budget deficits?

A: Budget deficit is a negative budget balance, where Budget balance = Tax revenue - Government…

Q: Analyze the challenges that the US economy is facing to reduce the deficit

A: The challenges that the US economy is facing to reduce the deficit are the slow growth, lower…

Q: How do we reduce the national debt and still stimulate business growth?

A: National debt: It refers to the amount which is owned by the government from its creditors. It is…

Q: Theory suggests that higher deficits lead to higher interest rates and less capital investment.…

A: A budget deficit is when spending exceeds income. It represents the poor financial health of an…

Q: Is rising national debt is harmful to the U.S economy?

A: National debt refers to the total amount of financial borrowings by the people and the government of…

Q: State and explain 4 limits to fiscal policy in a developing country economy

A: The fiscal policy is the way by which a government adjusts its spending levels and tax rates to…

Q: Mention a type of fiscal policy or monetary policy that is currently being implemented. Then discuss…

A: The fluctuation in the economic activity is tracked by the business cycle. In an economy, the fall…

Q: Answer the question completely: 1. How can fiscal policy promote economic growth and development?

A: Economic growth, outlined as a rise in people's real financial gain, indicates that the quantitative…

Q: Read the following extract and answer the question. Twin deficits key concern for next PH president…

A: The goal of macroeconomic policy is to maximize national income while fostering economic development…

Q: What is fiscal deficit and what are two reasons why this economic statistic is so closely monitored…

A: The fiscal deficit is defined as the difference between the government's total revenue and total…

Q: it a good policy for the government to create budget deficit?

A: Budget deficit = expenditure is more than revenue.  In today's time, government's function in a…

Q: Using a graphical analyses explore the consequences for a hypothetical developing economy, if the…

A: GDP refers to a monetary measure of the market value of all the final goods and services produced in…

Q: In an economy such as Canada's, absorbs some of the available for investment, driving the interest…

A: The policies related to the economy of Canada have been discussed.

Q: What are examples of stimulus package?

A: When the economy is suffering from slow-down or recessions, the governments often introduce policies…