Will Increase in government spending financed by borrowing help promote a strong recovery from a severe recession? Why or why not?

Q: If the government is running a fiscal deficit, it can only finance it through monetization. true or…

A: To finance the deficit, the government borrows money from the central bank and repays it by selling…

Q: An increase in the government's budget deficit means Options: public saving is greater than $0 and…

A: A government is said to be in deficit when it's revenue is less than its spending. Such situation is…

Q: Can governments use expansionary fiscal policy or expansionary monetary to effectively fight…

A: Answer: The use of fiscal policy and monetary policy is an effective tool to control the…

Q: How does minimizing business or personal debt help prevent bankruptcies in a recession?

A: Business and personal debt refers to the borrowing by the people to do business or personal…

Q: if there is continuous increase in savings what will happen to loanable funds market and becase of…

A: Answer - Need to find- what will happen to loanable funds market. effect of decrease in deficit on…

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: Analyse the action that government can take to assist the economy during a recession

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: What effect did the economic program have on the federal deficit?

A: ECONOMIC PROGRAM: Economic programs are the programs formed to improve the economy of the United…

Q: When a goverment takes steps to decrease the interest rate, how does this affect borrowers? How…

A: Interest rate: A loan fee is the level of chief charged by the moneylender to utilise its cash. The…

Q: Does the national debt have to be paid off at some time in the future? What will happen if it is…

A: The national debt is the amount of debt that the government owes to the public as well as to other…

Q: Crowding out occurs when   a. business profits are extremely high   b. government and private…

A: Under fiscal policy, the government alters its expenditures or taxation policy for the stabilization…

Q: Do you agree that the increase in national debt of the country have an effect to the growth of the…

A: Country seeks Debt to finance the deficit budget or repayment debt . This helps to expand the size…

Q: The government is seeking to directly borrow money from the central bank in order to invest in a…

A: A central bank is a financial institution given privileged control over the production and…

Q: During a recession, the government can help the economy by   a. decreasing taxes.   b. buying…

A: During a recession, the government can help the economy by decreasing taxes as it will allow public…

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: Collaboration with Congress during the Clinton Administration allowed for an aggressive…

A: When the government undergoes an aggressive deficit cutting plan, it means that the government is…

Q: Explain what effect a large federal deficit might have on interest rates?

A: The deficit in the budget arises when the government faces higher government spending with lesser…

Q: Why it could be the case that after an initial sharp increase, the budget deficit could drop through…

A: Budget deficit is when the government's expenditure exceeds the government's income.

Q: how could our government help solve the budget crisis? What changes could/should be made to spending…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: One of these four answers increases the demand for financial capital. Which one?  Group of answer…

A: When talking about financial capital, it is the requirement of the funds by the firms to deal with…

Q: Suppose that the federal government ran a sizable budget surplus during the next decade. Compared to…

A: Traditional view: According to the traditional view, if the government runs a budget surplus, it…

Q: the economy is in recession and government increases money supply do you think it will affect…

A: If the economy is in recession, it means that there are shortage of funds in the market.

Q: Which type of policy – fiscal or monetary - do you feel was most impactful 2020? Why?

A: We show that Both monetary ànd fiscal policies are growing naturally as they will focus on…

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: If a nation’s central bank, such as the US Federal reserve, believes the economy is headed toward a…

A: Meaning of Recession and Expansion: The term recession refers to the state under the business…

Q: Why would government use "discretionary macroeconomic stabilization policy?

A: The macroeconomic policy goal is to have a secure economic climate favorable to substantial and…

Q: Why would a central bank be concerned about persistent,long-term budget deficits?

A: Budget deficits refer to the situation of the government when the expenditure in the economy exceeds…

Q: How is the Social Security system currently influencing the size of the budget deficit? If it is not…

A: The budget deficit creates the problem in the economy. When there is budget deficit, it will leads…

Q: When the economy is in a recessionary mode, what will likely be the actions by government using…

A: In recessionary mode, the government pursue the expansionary fiscal policy which has two tools which…

Q: If Congress wanted to help the economy out of a recession, they would be most likely to: check all…

A: Recession refers to a phase of the downturn in the economic cycle when there is a fall in the…

Q: There is $10 trillion in the loanable funds market.  $6 trillion in private borrowing and $4…

A: (Q) There is $10 trillion in the loanable funds market.  $6 trillion in private borrowing and $4…

Q: Do you think policy makers should attempt to stabilize the economy ? Why ?

A: Every country has its goals and these goals can be achieved by using micro and macro tools in an…

Q: How finance minister can improve Malaysia's economy?

A: During the lockdown in 2020, the Economy of Malasia contracted by 3.1percent, due to the decrease in…

Q: Why do government budget deficit grow during recessions?

A: Recession is refers to the situation of lower economic activity. During recession, the economic…

Q: Even during a financial recession, consumers tend to increase spending in _______

A: A downturn is a time of declining monetary and economic performance across a whole economy that can…

Q: The flow of funds into and out of the different sectors of the economy results to a particular…

A: When talking about flow of funds, it explains the movement of funds or goods and services from one…

Q: Differentiate between Classical and Keynesian Economists approach to savings.

A: The money that is left by a consumer after subtraction of consumer spending from their disposable…

Q: Is it possible to assume there is crowding out as well with a formula? If there was crowding out of…

A:

Q: )Which of these methods of government deficit finance is MOST likely to crowd out private…

A: Government budget deficit: - Government budget deficit is the condition in which the government…