Which of the reasons given is often cited as a benefit of running a budget deficit? operating with a budget deficit lessens the impact of a recession budget deficits reduce tax costs for American workers working under deficit conditions helps to smooth out tax rates over time running a deficit helps to increase spending for public assistance programs
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- The U.S. government has shut down a number of times In recent history Explain how a government shutdown will affect the variables In the national Investment and savings identity Could the shutdown affect the government budget deficit?Which statement best explains why budget deficits may bring on a recession? a) Large deficits increase interest rates, attracting foreign investors. b) Persistent deficits lead to economic problems that scare away foreign investors. c) Spiraling national debt depresses private saving, reducing the amount of capital that can be invested. d) Deficit spending leads to a reduction in aggregate demand and a decrease in output.Reasons to be concerned with printing money to finance the deficit. Reasons to be concerned with borrowing to finance the deficit. Please explain these questions as soon as possible please
- When an annual deficit occurs, how is it financed? 1. The federal government buys US Treasury Securities from domestic and foreign investors to raise cash. The future obligations of these securities result in publicly held assets. 2. The federal government sells US Treasury Securities to domestic and foreign investors to raise cash. The future obligations of these securities result in publicly held deficits. 3. The federal government buys US Treasury Securities from domestic and foreign investors to raise cash. The future obligations of these securities result in publicly held investments. 4. The federal government sells US Treasury Securities to domestic and foreign investors to raise cash. The future obligations of these securities result in publicly held debt.In which of the following cases does the size of the government’s debt and deficit indicate potential problems for the economy? Explain your answer. a) The government’s debt is relatively low, but the government is running a large budget deficit as it builds a high-speed rail system to connect the major cities of the nation. b) The government’s debt is relatively high due to a recently ended deficit-financed war, but the government is now running only a small budget deficit. c) The government’s debt is relatively low, but the government is running a budget deficit to finance the interest payments on the debt. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.The imaginary country of Acordia lists the following projected revenues and outlays for 2020: $30 million in personal income tax, $20 million in corporate income tax, $7 million in indirect taxes, $2 million in investment income, $35 million in transfer payments, $14 million in government expenditures, and $4 million in debt interest. What is the projected budget surplus (or deficit) for 2021? Calculate the amount and indicate whether it is a surplus or deficit.
- Read the following extract and answer the question. Twin deficits key concern for next PH president The next CEO of the Philippines will have to grapple with “twin deficits” that may return this year, as the government spends more to rebuild the economy and the demand for foreign exchange expands with the resumption of investment spending coming out of a prolonged pandemic. This is according to JP Morgan economist Nur Raisah Rasid, who sees a return to twin deficits—referring to a simultaneous deterioration in the government’s budget position and widening of the country’s current account deficit as foreign exchange transactions with the rest of the world increase. Which of the following macroeconomic objective is measured by the variable(s) discussed in the above extract? a) Price stability b) Redistribution of income c) Full employment d) Balance of payments stability Solve within one hour for upvoteWhich of the following is not true of deficits? Supply-side policies contribute to budget deficits by cutting taxes. Demand-side policies contribute to budget deficits by increasing government spending. Deficits in any budget year are repaid in the next year's budget. Deficits result in increased debt.Which statement is a major consequence of high government budget deficits? a) All else held constant, high budget deficits financed by borrowing will lead to lower interest rates. b) If the government finances the deficit by borrowing money, it can crowd out business investment. c) Budget deficits cause unemployment as firms relocate to countries with balanced budgets. d) Printing money to finance the deficit can lead to a significantly deflationary environment.
- What are implications for a government running deficits?How could that be effectively addressed?What are the ethical concerns of the deficit?According to MMT : Group of answer choices a. none of the above b. Government deficits are always a good thing c. The government should print money to finance deficits d. all of the above e. Government deficits are never inflationaryWhat happens to the following variables during an expansion? a. government budget deficits (surplus)