Collaboration with Congress during the Clinton administration allowed for an aggressive deficit‑cutting plan to pass. At the end of the 1990s, Congress eliminated the government deficit. Manipulate the graph to illustrate how the elimination of the deficit affects the loanable funds market.

Q: A government budget deficit shifts the supply for loanable funds to the right. Select one:

A: Loanable funds are increased when the saving is increased in the economy it will shift the supply…

Q: Do treasury securities finance a federal budget deficit? If so would the government purchase…

A: Yes, federal securities finance a federal budget deficit.

Q: 5 Question 15 Which of the following is not a possible cost of South Africa having sizeable budget…

A: The budget deficit is the difference between the government expenditure and revenue. The government…

Q: Explain the impact of the government's Saving incentives on the market for loanable funds?

A: The market for loanable funds describes how market of borrowings works. The supply(S) of loans is…

Q: Which among the following is the quantitative method of credit control by the Central Bank? (A)…

A: In the domain of money related strategy and monetary guideline, central banks utilize different…

Q: 1a. What happens in the loanable funds market when legislation passes that gives tax credits to…

A: When legislation passes that gives tax credits to buyers, it may have several consequences at the…

Q: Refer to Figure 3. Which of the following movements would be consistent with the government budget…

A: Loanable Funds:Loanable funds refer to the supply and demand of money available for borrowing and…

Q: Would you please explain carefully several financial sources how the government financing its…

A: The gap between the government's total revenue and total expenditure is known as the fiscal…

Q: Problem 6: Compile the data on budget deficit (as % of GDP), Domestic Financing of deficit (as % of…

A: The budget deficit is the difference between the total revenue and the total expenditures of the…

Q: An increase in interest rate would lead to a _____ it's supply of loanable funds a. No effect b.…

A: Market of loanable funds: The market for loanable funds explains the procedure of borrowing. It…

Q: Several European countries suffered from financial crises at the same time as the U.S. Match each…

A: Unemployment refers to those who are employable but can't find work. Those in the workforce who are…

Q: Please don't give photo answer give proper explanation answer and take a like

A: a. Certain Returns:Project A: Gross Return = Revenue - Cost = 115,000 pesos - 100,000 pesos = 15,000…

Q: According to MMT : Group of answer choices   a. none of the above   b. Government deficits are…

A: The Modern Monetary Theory (MMT) is an economic theory that proposes that the government could spend…

Q: extent of 7%, calculate the real deficit in that country. Show your calculations.

A: Given - Nominal deficit  = $14 billion               Debt - $29 billion              inflation - 7%…

Q: Assumed that the governemnt maintained a balance budget initially.However, the financial secretary…

A: Equilibrium is at such an interest rate where loanable funds supplied is equal to the quantity of…

Q: Explain how implementation of fiscal policies and monetary policies can both be utilized to increase…

A: Fiscal Policy is defined as a policy which is used by the government of an economy to influence…

Q: What measures and interventions can a government take to reduce a budget deficit?

A: The budget deficit is the macroeconomic problem which when aggravated may lead to the one of the…

Q: 37)During the Great Depression, the federal govt mostly had a cyclically adjusted budget deficit…

A: 37.True. During the great depression,spending had to be increased to come out of recession.

Q: When the government funds spending projects by borrowing money (issuing government bonds), demand in…

A: Demand for loanable funds illustrates the inverse relationship between interest rate and quantity of…

Q: The federal government ran a budget surplus in the late 1990 and in the year 2000, but has since…

A: The fiscal deficit leads to high unemployment and the recessionary situation in an economy because…

Q: Crowding out occurs when   a. business profits are extremely high   b. government and private…

A: Under fiscal policy, the government alters its expenditures or taxation policy for the stabilization…

Q: With an increase in the margin requirement, availability of credit in the economy: a. Increases b.…

A: The value that comes out the difference between the current value of the security of a for a loan…

Q: 2. What are the budget revenues for a government to finance government spending? Explain why money…

A: There are a few sources of revenue for the government to finance its expenditure. The major part of…

Q: Define the term the Truth in Lending Act?

A: In 1968, the federal enhanced a law known as Truth in Lending Act (TILA) to protect the consumers…

Q: Explain how the Australian Government’s ability to reduce its budget deficit is affected by the…

A: Population economics is a particular field of economics that examines the relationship between…

Q: Do you believe credit is the life blood of the economy?

A: Credit is  the something in which a lender lends money, goods, or services to a borrower in exchange…

Q: Describe some of the positive or negative impact of debt of a company, an industry, a country or a…

A: Positive impact of debt: Debt allows the a company to expand its operations and build assets in the…

Q: government finances the deficit by issuing bonds, what amount. billion percent rate of interest, how…

A: Debt  describes to an obligation or liability that happen when one party, known as the debtor,…

Q: Security Treasury Bills Corporate Bonds Treasury Notes Corporate Stock US Savings Bonds Treasury…

A: The public debt is defined as the deficit that is experienced by the government over a specific…

Q: B). Because developed countries issue debt denominated in foreign currencies, they are able to…

A: The measure that depicts the value of one currency being measured in terms of another currency is…

Q: As long as tax rates are not very high, a decrease in tax rates will tend to   a. increase the…

A: Budget deficit:-  Budget deficit happens when spending of government is more than the revenue earned…

Q: (options: exceed or fall short of) federal revenues over the next six years, implying that the…

A: From the projection of CBO, it is possible to understand the trends in government debt, growth,…

Q: Consider an economy that is composed of identical individuals who live for two periods. These…

A: Utility function : U = c10.5 + c2 0.5 Intertemporal Budget Constraint : c1 + c2 /(1+r)  = Y1 + Y2…

Q: When the U.S. debt-to-GDP ratio has fallen, it has generally been because: the budget deficit fell.…

A: The debt-to-GDP ratio is a metric that compares a country's public debt to its gross domestic…

Q: If borrowers have greater confidence that they will be able to repay in the future,…

A: Financial capital is defined as an economic resource that is measured in terms of money and is used…

Q: Explain how a budget deficit arises and what actions governments must take in this circumstance. How…

A: please find the answer below.

Q: Why might the level of government debt affect the government’s incentives regarding money creation?

A: The process through which the supply of money is being increased in an economic region or a country…

Q: A sovereign debt crisis is most likely to occur for which type of country? a large, rich country a…

A: Answer: d (a small, poorer country with a lot of debt) Explanation: A small and poorer country with…

Q: How and why would joint budget resolutions be effective at influencing budget reforms and reducing…

A: A joint budget resolution is a legislative degree that sets forth the budget goals and targets for…

Q: Changing Budget Priorities) What spending category claimed the largest share of federal outlays…

A: When an unregulated market fails to allocate resources efficiently then this situation is known as a…