Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 31, Problem 8RQ
How would you expect larger budget deficits to affect private sector investment in physical capital? Why?
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Chapter 31 Solutions
Principles of Economics 2e
Ch. 31 - In a country, private savings equals 600, the...Ch. 31 - Assume an economy has a budget surplus of 1,000,...Ch. 31 - In the late 1990s, the U.S. government moved from...Ch. 31 - Imagine an economy in which Ricardian equivalence...Ch. 31 - Why have many education experts recently placed an...Ch. 31 - What are some steps the government can take to...Ch. 31 - Based on the national saving and investment...Ch. 31 - How would you expect larger budget deficits to...Ch. 31 - Under what conditions will a larger budget deficit...Ch. 31 - What is the theory of Ricardian equivalence?
Ch. 31 - What does the concept of rationality have to do...Ch. 31 - What are some of the ways fiscal policy might...Ch. 31 - What are some fiscal policies for improving a...Ch. 31 - What are some fiscal policies for improving the...Ch. 31 - Explain how cuts in funding for programs such as...Ch. 31 - Assume there is no discretionary increase in...Ch. 31 - Explain how decreased domestic investments that...Ch. 31 - The U.S. government has shut down a number of...Ch. 31 - Explain how a shift from a government budget...Ch. 31 - Describe how a plan for reducing the government...Ch. 31 - Explain whether or not you agree with the premise...Ch. 31 - Explain why the government might prefer to provide...Ch. 31 - Under what condition would crowding out not...Ch. 31 - What must take place for the government to run...Ch. 31 - Sketch a diagram of how a budget deficit causes a...Ch. 31 - Sketch a diagram of how sustained budget deficits...Ch. 31 - Assume that the newly independent government of...Ch. 31 - Illustrate the concept of Ricardian equivalence...Ch. 31 - During the most recent recession, some economists...
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Similar questions
- Identify one real world example that illustrate how fiscal policy can facilitate economic growth in a countryarrow_forwardExamine the consequences for a hypothetical developing economy if the rate of borrowing to fund a fiscal deficit is growing annually at a faster rate than the GDP. Include a graphical analyses using the below hypothetical numbers and percentages. GDP = R1000 Fiscal Deficit = R1200 GDP is used to settle / pay for fiscal deficits. Therefore R1000 - R1200 = R200. This implies that the deficit keeps on growing. Remember the GDP equation and the impact of imports and exports.arrow_forwardWhat are implications for a government running deficits?How could that be effectively addressed?What are the ethical concerns of the deficit?arrow_forward
- what do you mean by financial inclusion, market-friendly environment, and fiscal incentive system in terms of policy recommendations?arrow_forwardIf taxes are increased, will most people save more or less than before? Does national saving rise or fall? Explain.arrow_forwardDo tax cuts increase economic growth and taxable income so much that tax revenue increases?arrow_forward
- How does the government budget deficit impact interest rates, investment, and economic growth? Explain your answer.arrow_forwardSketch a diagram of how sustained budget deficits cause low economic growth.arrow_forwardWhat does it mean when someone says that "High debt usage by corporations drives up the riskiness of our country’s economic base"?arrow_forward
- a) Why can't the government run a budget deficit in a one- period macroeconomic model? b) Why are government transfer payments not included in (expenditure-based) GDP?arrow_forwardExplain how cuts in funding for programs such as Head Start might affect the development of human capital in the United States.arrow_forwardIf you were given the authority to write a law addressing numerous of the Philippines' macroeconomic concerns, what would it be and why?arrow_forward
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