________________________ making a series of future expenditures without simultaneously committing to collect enough tax revenues to pay for those expenditures. a. Budget deficits b. Debt crises c. Loan guarantees d. Unfunded liabilities
Q: 1. Using the chart above, write a short description highlighting positive and negative indicators of…
A: Considering the given forecasts, the only positive is that we see a decline in inflation from 2.6%…
Q: The GDP must grow by at least $60 billion in order to achieve the target growth rate. The country is…
A: The gross domestic product(GDP) refers to the market value of all the final commodities(goods and…
Q: Explain how an increase in government spending may decrease private investment (crowding-out…
A: When government raises its expenditure on investment, it leads to a rise in the aggregate demand in…
Q: With the help of examples, discuss the resource allocation function, the distribution function and…
A: ▪︎Resource allocation function:- Resource allocation is the method involved with appointing and…
Q: True or False 1.Budgeting for the government is far more complicated, the federal government has…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Question 1: The strategies like reduction in taxes and government budget deficit will increase the…
A: Investment can be increased substantially by adopting any of the following two strategies: Reduction…
Q: Assume an economy is in recession and the government is considering using fiscal stimulus measures…
A: When government raises its expenditure on investment, it leads to a rise in the aggregate demand in…
Q: The difference between the gross public debt and the net public debt is that the a. gross public…
A: Public debt: - Public debt is that situation in which government expenditure exceeds government…
Q: Explain why deficit finance of government expenditure may lead to ‘crowding out'
A: A government deficit or budget deficit refers to a situation where the government expenditures are…
Q: The U.S. government's total debt consists of borrowing from both inter-governmental agencies and…
A: In the U.S the total debt is owed by the federal government of the U.S to treasury security holders.…
Q: 7. Non-discretionary fiscal policy designed to counteract a reduction in aggregate demand might…
A: A non-discretionary fiscal policy refers to the government action or policy thay acts to deal with…
Q: the governament budget constrant: deficits,debts,spending and taxes kindly explain them
A: Meaning of Government Budget: The term government budget refers to a budget statement under which…
Q: Fiscal deficit indicates the total borrowings requirements of the government from all the sources.…
A: #Fiscal deficit is given as a difference between the total expenditure of the government and total…
Q: he Effects of Fiscal Deficits on an Economy.
A: Fiscal deficits are unfavourable balances that develop whenever a government spends more within a…
Q: China's government debt is $350 billion at the end of 2019 with a 2% inflation rate during the year.…
A: GDP refers to the total value of all the final goods and services that produced within the country…
Q: Question 7: Suppose that the primary deficit (G-T) is zero in the economy. Suppose further that the…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: 07. What factors make an expansionary "stimulus" fiscal policy effective? a) A government…
A: Fiscal stimulus can raise output and incomes in the short run. To have the greatest impact with the…
Q: If the South African government can fund its deficits without the economy experiencing rising…
A: Unbalanced budget exists in an economy if its revenue collected from taxes and expenditure done by…
Q: The total public debt is more revelant to an economy than the public debt as a percentage of GDP. An…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: 10.We discussed four problems (Problems of Timing, Political Consideration, Offsetting State and…
A: The four problems of fiscal policies are listed as below. Problems of TimingPolitical…
Q: A serious problem with fiscal policy is that a. All countries borrow heavily from foreigners, which…
A: Fiscal policy is the action of the ruling party or government of a nation to influence the economic…
Q: Problem 1 1. Total budget deficit is equal to: O Frictional deficit plus cyclical deficit Structural…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: Revenues $100 billion $100 billion $100 billion $100 billion $200 billion Expenditures $100 billion…
A: Given are the two terms debt and deficit. The difference between the two is essential for the above…
Q: 07. What factors make an expansionary "stimulus" fiscal policy effective? One answer a) A…
A: The fiscal policy refers to a policy which is used to influence the aggregate demand in the economy.…
Q: The government’s budget deficits have tended to be somewhat ‘counter-cyclical’ with deficits…
A: The expansionary fiscal policy during the recessions sometimes lead to increase in the government's…
Q: 19. Gross investment is the total amount spent on purchases of new capital and on replacing…
A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…
Q: The Swedish Fiscal Policy Council discusses public debt policy in a low interest environment in…
A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…
Q: xplain the five problems and criticisms that arise in the implementation of fiscal policy.
A: Fiscal policy is the policy that is adopted by the government to bring economic stability in the…
Q: A. What was the average increase in debt for Nation XYZ between the years 2005 and 2015 B. What was…
A: Real Gross Domestic Product (GDP) can be defined as the inflation adjusted value of the total value…
Q: The government of Osris believes in balancing its budget over a seven-year cycle. Over the first six…
A: Given that the tax rate is 0.25, we will have the following table:
Q: 3. In FY 2017 (the fiscal year 2017 is from October 1, 2017 to September 30, the U.S. Federal…
A: Answer - Thank you for submitting the questions.But, we are authorized to solve one question at a…
Q: Question 1 What is the role of the Council Economic Advisers (CEA) as it relates to the…
A: given,First year budget deficit = $40 billionSecond year budget deficit = $20 billionThird year…
Q: Analyze the effects of a government budget deficit.
A: Hey, thank you for the question. Since there are multiple questions posted, we will answer first…
Q: In à člosed economy, Y = $15 billion C = $12.0 billion | = $1.5 billion TR = $3.0 billion T = $2.0…
A: A budget deficit refers to when the revenue earned by the government is exceeded by its…
Q: Explain the difference between a budget deficit and the national debt. How are they related?
A: A budget is a statement of the revenue and expenses of an economy over a given period of time. The…
Q: Explain how 'crowding out' can harm productivity growth.
A: Economy is in recession and the government is considering using fiscal stimulus measures to boost…
Q: why did greece have a debt crisis in 2010 - 12 with public debt around 170% of GDP while Japan has…
A: The Greek government-debt crisis was the sovereign debt crisis looked by Greece in the repercussions…
________________________ making a series of future expenditures without simultaneously committing to collect enough tax revenues to pay for those
expenditures.
a. Budget deficits
b. Debt crises
c. Loan guarantees
d. Unfunded liabilities
Step by step
Solved in 2 steps
- 3********************* 3)List the five most powerful changes to fiscal policy that you would propose for the United States that you would like to see implemented that would reduce our debt-to-GDP ratio and put the country on a fiscally sustainable path to the future._______ 10) National bills must always be proposed by members of Congress.Large budget deficits __________. a.) reduce the value of domestic currency b.) help alleviate the national debt c.) occur when tax revenues are greater than government spending d.) Decrease the interest rate
- 10) Fiscal policy is defined as changes in federal ________ and ________ to achieve macroeconomic objectives such as price stability, high rates of economic growth, and high employment. A) taxes; interest rates B) taxes; expenditures C) interest rates; money supply D) taxes; money supply2) Transfer payments are the ________ in the government's budget. A) smallest expenditure source B) largest expenditure source C) smallest revenue source D) largest revenue source 3) Personal taxes are the ________ in the government's budget. A) smallest expenditure source B) largest expenditure source C) smallest revenue source D) largest revenue source 4) A government's debt is increased when it A) balances is budget. B) buys more bonds. C) runs a deficit. D) runs a surplus. 5) When a government runs a surplus A) its debt increases. B) it must raise taxes. C) its debt decreases. D) it must cut spending. 6) The amount the government owes to the public is the federal debt. 7) If tax receipts are greater than government expenditures the government is running a surplus. 8) If the government runs a surplus, then the government debt increases. 9) Transfer payments are the largest part of the U.S.…An amendment to the Texas Constitution requires a balanced budget. This means that _____. A. any increase in government spending must be offset by a decrease in the total funds allocated to the General Revenue budget B. the legislature cannot approve a budget if it exceeds the projected revenues for the state by more than 30 percent C. the legislature cannot approve a budget if it exceeds the projected revenues for the state by more than 10 percent D. any increase in government spending must be offset by an increase in revenue and/or cuts in spending elsewhere in the budget
- Question 31 What is the relationship between a budget deficit and the national debt? A budget deficit adds to the size of the national debt They are the same when talking about the government The national debt makes a budget deficit more likely There is no connection between themQuestion 4 (1) Differentiate between the following terms: a. a budget deficit. b. the government debt. a budget surplus с. d. a balanced budget.Suppose that the economy is in a recession as a result of a fall in investment spending and real GDP is below potential GDP. (a) Illustrate this on an aggregate demand in ation diagram. (b) When real GDP falls, what happens to tax revenue, government spending, and the budget balance? (c) If a balanced budget amendment were in place, what would have to happen to government spending and/or taxes? Illustrate on the diagram. (d) Is it wise to allow the government to run a de cit during a recession and a surplus during an expansion?
- Debt, the total of a government’s financial obligations, measures what the state borrows from its citizens, foreign organizations, foreign governments, and international institutions. Future worries about the ability of coming generations to ______________ (renege, repay, OR service) the debt ____________ (fortifies, saps, OR sustains) consumer confidence and _______________(maximizes, liberates, OR constrains) government flexibility._______ The total of all federal deficits is calleda. depression.b. fiscal policy.c. gross domestic product.d. national debt.e. business cycleText Problem 14-2 Question Help v Suppose that the Office of Management and Budget provides the accompanying estimates of federal budget receipts, federal budget spending, and GDP, all expressed in billions of dollars. Calculate the implied estimates of the federal budget deficit as a percentage of GDP for each year. (Enter each response as a percentage rounded to one decimal place. Do not include a plus or minus sign.) Federal Budget Receipts (2% growth) $2,329.8 Federal GDP Deficit as a % Budget Spending (5% growth) $2,682.6 Year (3% growth) $14,573.2 of GDP 2019 2020 2,376.4 2,816.7 15,010.4 % 2021 2,423.9 2,957.6 15.460.7 2022 2,472.4 3,105.4 15.924.5