When are larger deficits desirable?
Want to see the full answer?
Check out a sample Q&A here
Related Economics Q&A
Find answers to questions asked by students like you.
Q: What are the the Costs and Benefits of Deficits?
A: The deficit is the situation when expenditure is higher than the revenues of an economy.
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: how much is the current primary deficit?
A: Primary deficit = fiscal deficit - interest payments Primary deficit = government expenditure (…
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: 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: What are primary deficit?
A: # In economics the term deficit means shortfaling. This happens mainly when the expenses are more…
Q: What are implications for a government running deficits?How could that be effectively addressed?What…
A: The economies around the world tend to focus on enhancing their economic growth in a way that it…
Q: What is meant by revenue deficit and what does it indicate
A: There are three main deficit of any government which are:- (1) Revenue deficit (2) Fiscal deficit…
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: How does tax cuts encourage savings and investment
A: Since there is inverse relationship between the willingness to work and tax rate.
Q: What is a budget deficit? How does it affect interest rates, investments and economic growth?
A: Budget deficits happen when spending is greater than revenue and signify the financial strength of a…
Q: What is a budget deficit? How does it affect interest rates, investments and economic growth?
A: A budget is a financial document or the financial plan of an economy which includes the planned…
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 will you identify budget deficits?
A: Budget deficit is a negative budget balance, where Budget balance = Tax revenue - Government…
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: Sketch a diagram of how sustained budget deficits cause low economic growth.
A: To start with, other things equal, fiscal deficit lessen public/national saving and future national…
Q: What are some of the ways fiscal policy might encourage economic growth?
A: Fiscal policy is a macroeconomic policy that is implemented by the government for monitoring and…
Q: nts, critically analyze how national debt can affect the economic prosperity of a country.
A: As humans developed, there was a need for a subject that would divide economics in an efficient…
Q: Can government spending that causes crowding out be detrimental to long-run economic growth?
A: Crowding out is basically based on the idea that the fiscal policy by the government leads to a…
Q: If you were the Prime Minister of Malaysia, what would you do to reduce the fiscal deficit of the…
A: In Malaysia, it can be seen that the debt to GDP ratio is very high due to which government is…
Q: Is it a good policy for the government to create budget deficit? Why and why not?
A: The government is creating a budget deficit in order to stimulate the aggregate demand. To boost the…
Q: What happens to the following variables during an expansion? a. government budget deficits…
A: The economic activities will boost during the expansionary phase of a business cycle. As a result,…
Q: One objection to deficit spending is that it increases the demand for loanable funds thereby putting…
A: Demand curve for the loanable fund shows the level of demand for loan at different interest rate.…
Q: What are the budget deficits
A: Budget- It is a financial plan for a particular time period.
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: 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: 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: What are some economic policies (fiscal AND monetary) that should be enacted to stabilize the…
A: The following problem has been solved as follows:
Q: How does fiscal policy help the Philippine economy?
A: The government's tax and expenditure policies are referred to as fiscal policies. There are two…
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: 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: Suppose that Edison, an economist from a research institute in Texas, and Hilary, an economist from…
A: The disagreement is because of the different opinions about Laffer curve. Laffer curve is given by…
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: (c) Describe what would happen if the government tried to eliminate its budget deficit by…
A: Y = C + I + G C = a + b(Y - T) T = tY a = 20 b = 0.75 t = 0.25 I = 100 G = 240 C = a + b(Y - T) C =…
Q: What are examples of stimulus package?
A: When the economy is suffering from slow-down or recessions, the governments often introduce policies…
Q: The capital spending is?
A: The capital spending is the sum of money incurred by business entities to acquire a new or upgrade…
Q: How could the government lower the federal deficit?
A: A government deficit occurs when the spending (subsidies, pensions, infrastructure, and other…
Q: Consider the following data (in billion $) for a country in a particular year: (assume this country…
A: Click to see the answer
Q: Assume there is no discretionary increase in government spending. Explain how an improving economy…
A: Click to see the answer
Q: Assume there is no discretionary increase in government spending. Explain how an improving economy…
A: Government spending refers to the expenditure made on the public sector by the government which…
Q: In view of the large adverse impact of COVID-19 on the world economy, many governments have…
A: The condition when the government expenditure exceeds the revenues, it brings a deficit in the…
Q: Is debt good for the Pakistani economy? Discuss pros and cons in light of theory.
A: Pakistan has been facing a debt crisis since long and it is one of the major challenges concerning…
Q: Is debt good for the Pakistani economy? Discuss pros and cons in light of theory.
A: No, the debt is not good for the Pakistani economy as the negative effect is more than the positive…
Q: The following transactions took place in Ecoland in 2019: Trillions of 2015 dollars Government…
A: As per the policy , I can solve the first three subparts for you. Part a) GDP in 2015 = C + I + G +…
Q: What is the best combination of fiscal policies and monetary policies for a country like Japan whose…
A: The aggregate demand (AD) and aggregate supply (AS) model explains the marker equilibrium where the…
