Write down the relationship between Budget Deficits, Debt, Government Spending and Taxes as a ratio to GDP. Explain the four independent variables that affect the ratio of Debt to GDP and the direction of its movement b. Explain the difference between policy rule and policy discretion in monetary policy. Please provide examples.

Write down the relationship between Budget Deficits, Debt, Government Spending and Taxes as a ratio to GDP. Explain the four independent variables that affect the ratio of Debt to GDP and the direction of its movement b. Explain the difference between policy rule and policy discretion in monetary policy. Please provide examples.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter14: Macroeconomic Policy: Tradeoffs, Expectations, Credibility, And Sources Of Business Cycles

Section: Chapter Questions

Problem 6E

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