a) consumption and current saving. (b) Determine aggregate private saving, aggregate consumption in each period, government spending in the current and future periods, the current-period government deficit, and thequantity of debt issued by the government in the current period. (c) Suppose that current taxes increase to 15 units for each consumer. Repeat parts (a)

(a) In this case, Cunneen thinks that the RBA wants to       [maintain]  the value of the Australian dollar. (b) If the RBA wanted to reduce the value of the Australian dollar, it would need to       [reduce]  Australian interest rates. (c) If the RBA’s strategy was to increase the value of the Australian dollar, it would have taken steps to cause       [less]  capital to flow into Australian financial markets. (d) A strategy of reducing the value of the Australian dollar via conventional monetary policy would be       [more, less, just as]  difficult, if interest rates overseas were to rise. (e) Were the RBA to want the value of the Australian dollar to be higher, they would need the demand curve for the Australian dollar in the FX market to       [shift to the right, shift to the left, not shift at all]  . (f) Were the RBA to want the value of the Australian dollar to be lower, they would need the supply curve for the Australian dollar in the FX market to       [shift to the right,…

The necessary condition for a budget to be considered fiscally sustainable is that:(a) it is balanced annually.(b) it does not cause the crowding out effect.(c) the current generation of voters accepts the burden of their current level of taxation.(d) the present value of expected future government revenue is equal to the present value of expected government spending.

Need help with multiple choice question

QUETION one Distinguish between the following set of terms. (a)Depreciation and devaluation of a currency (b)Expantion parth and price consumption curve. (c)Transfer payment and transfer earnings. (d)Balance of trade and terms of trade (e)Gross national product at market price and net national product at factor cost. QUETION two Maji Mazuri Water and Sewerage Company limited is the only water provider in Mjini city. The company supplies water to two distinct markets; domestic and commercial users. The demand for the company’s product in the two markets is represented by the following equations; Q1= 101 – 0.5p1 Q2= 160.4 – 0.2P2 where Q1= output sold to domestic users Q2= output sold to commercial users P1= price charged to domestic users P2= price charged to commercial users The unit cost of the company is given by the function C = 160 + 20Q + 18Q2 The total demand fpr the company’s output is given by the equation; Q = 200-4P. Required (a) The profit…

A newly appointed Minister of Finance is to effectively stimulate the economy within 3 months. He then asks his group of advisors about it and they come up with 3 projects as follows: A. A money transfers of 3,000 THB per month for 3 months to unemployed people; B. Provide attractive co-payment (30% paid by government and 70% paid by travelers) travel packages for tourists to travel within the country for the period of 3 months; C. Build bridges, roads and small dams for a total of 1,000 projects with an emphasis on hiring local people and these projects are to be completed within a 3-months period. The Minister of Finance then contacts the Budget Bureau for the money to do these projects. The Budget Bureau tells him that there is enough money to do only 1 project. The Minister does not sure which project to choose so he turns to you for advice. His questions to you are 1. Which one of the 3 projects should he implements? Explain 2. Why the other 2 projects are not to be implemented?…