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Can government spending that causes crowding out be detrimental to long-run
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- Sketch a diagram of how sustained budget deficits cause low economic growth.If taxes are reduced , will most people save more or less than before ? Does national saving rise or fall? Explain .If taxes are increased, will most people save more or less than before? Does national saving rise or fall? Explain.
- In 2010 the Greek government had to inform the European Commission on how it would control its budget deficit and improve the performance of its economy. The government’s debt is so high that agencies assessing the creditworthiness of the government downgraded it (which would mean more interest has to be paid to raise finance). Proposals were likely to include a 10% cut in government spending. What actions can the government take to increase national income growth in Greece?What are some fiscal policies that might encourage economic growth ? Please answer this question carefully! What are some fiscal policies that might improve a society's human capital? Please answer this question carefully! How would you expect larger budget deficits to affect a private sector investment in physical capital? Why? Please answer this question carefully!How does tax cuts encourage saving and investment