Which of the following will result to a surplus in the financial account? O a. Amount paid to foreigners for goods and services is more than the amount received O b. Value of assets bought from foreigners is less than the value sold to foreigners O c. Value of assets sold to foreigners is less than the value bought from foreigners O d. Amount paid to foreigners for goods and services is less than the amount received
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- K Because in the government budget deficit increase the real interest rate, budget deficits can O A. decreases; increase OB. increases; increase OC. decreases; decrease O D. increases; decrease firm investment. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.1. 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 policy. 2. Company tax is a: (a) Progressive, direct tax; (b) Progressive, indirect tax; (c) Proportional direct tax; (d) Regressive indirect tax. 3. In the base year, a country produced 50 units of output at a price of R6,00 each for a nominal GDP of R300. This year it produces 60 units of output at a price of R8,00 each. What is the percentage change in real GDP since the base year?(a) 5%; (b) 10%; (c) 20%; (d) 15%. 4. Which of the following statements about Fiscal Policy is INCORRECT?(a) In order to combat inflation, the South African Reserve Bank must apply a contractionary fiscal policy;(b) A contractionary fiscal policy can result in higher levels of unemployment; (c) Expansionary fiscal policy will increase the budget deficit; (d) The application of fiscal policy will have no effect on…Which of these is True? O. The world credit-money supply was hugely contracted before the crash, which is why homes were so expensive O. Central Banks create 'Base Money O. Central Banks create all the money supply O. The collapse of hte dollar is the reason the US housing market was flooded with loanable funds O. Central Banks promoted speculation (perhaps unwittingly with their tight money policy in the years of the pre 2008 bubble O. Private banks only pass on deposits when they make loans 8. Private banks create money. O. True O. False
- ONLY answer! NO explanation! 1. Which of the following statement is true?a) Investment tax incentive increases investment, which increases productivity growth and living standards in the long run.b) Budget deficit reduces investment, which reduces productivity growth and living standards.c) Both investment tax incentive and budget deficit causes net exports to falld) all of the above 2. Which of the following caused a trade deficit in the USA during 1990s?a) Although national saving increased in the 1990s, investment increased even at a faster rate.b) Slowdown in national savings but a rapid increase in investment.c) Huge government deficit.d) An increase in government spending. 3. Let the govt. removed previous tax incentive for investment. What kind of effect will this have on the real interest rate?a) The real interest rate will remain unaffected.b) The real interest rate will increase.c) The real interest rate will decrease.d) No effect. 4. Following the previous question, what…What does it mean to say that a currency appreciates? Depreciates? Becomes stronger? Becomes weaker?Assume an economy has a budget surplus of 1,000, private savings of 4,000, and investment of 5,000. Write out a national saving and investment identity for this economy. What will be the balance of trade in this economy? If the budget surplus changes to a budget deficit of 1000k with private saving and investment unchanged, what Is the new balance of trade In this economy?
- 4. When nominal interest rates are zero, the central bank can still lower them by printing moneyand purchasing bonds from banks. This increases the supply of loanable funds and stimulateslending.5. A pro-savings policy by the US would likely reduce the US trade deficit.6. When savings equals investment, reducing savings and increasing consumption is especiallyeffective in stimulating output.19. If the US Government budget deficit is high this will tend to push US interest rates higher. True False.onsider the following data (in billion $) for a country in a particular year: (assume this country has Zero Transfer Payment Personal consumption expenditure (C) 200 Exports (x) 10 Government Purchases of goods and services (G) 120 Imports (m) 15 Gross Domestic Product (Y) 1800 Taxes 20 d. What is the value of gross investment? e. What is the value of net export? f. Is the country lending to or borrowing from rest of the world? g. Dose the government has deficit, balance or surplus budget? h. What is the amount of investment financed by national saving? i. What is the amount of investment financed by borrowing from rest of the world? J. What is the meaning of transfer payment
- When the U.S government runs a Deficit, the savings curve in the market for loanable funds shifts to the____ ___ investment rates and _____domestic investment net capital outfiow.Multiple ChoiceO. right increasing; increasing O. left increasing; decreasing O. right decreasing; increasing O. left decreasing; increasingThe PH debt as of today amounts 12 trillions. This balloons with an interest rate of 0.16% yearly. Suppose the government requires every earning individual to pay debt by 2030, how much of us would need to pay monthly (annual payment amortized in 12 equal payments), assuming that inflation is 3%, the interest rate is 5.6% compounded daily, and we will start the payment by the end of 2022? The Philippines is estimated to have 110 million people, with the work force around 20%. Note: Show the solution appropriately. Thankyou!What is Sovereign debt? Why do countries issue sovereign debt in foreign currency? Can you look up the current share of Argentina’s total external debt that’s denominated in foreign currency? What does it mean for a country to default on its sovereign debt? (i.e. explain what default means) How do countries usually get out of a sovereign debt crisis? After a country goes through a sovereign debt crisis, does it gets excluded from international capital markets? (i.e. no one would buy sovereign debts issued by that country anymore) If it does not, what is the consequence that the country suffer as a result of the sovereign debt crisis?