If a country is experiencing a budget deficit and the government reduced spending, resulting in a balanced budget. How a country’s shift from budget deficit to balanced budget would affect its investments, economic growth, net capital outflow and currency exchange rate?
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If a country is experiencing a budget deficit and the government reduced spending, resulting in a balanced budget. How a country’s shift from budget deficit to balanced budget would affect its investments,
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- If a country is experiencing a budget deficit and the government reduced spending, resulting in a balanced budget. How a country’s shift from budget deficit to balanced budget would affect its investments, economic growth, net capital outflow and currency exchange rate? Use diagrams where necessary?What are some reasons to think that America is obligated to help poor countries? What are some reasons to think that America is not obligated to help poor countries? Is foreign aid worsening our budget deficit?What is the difference between a government deficit and a trade deficit ?
- United States currently runs a significant trade deficit with the rest of the world. Research an academic journal article regarding some of our trade balances with specific countries and share what you find. For example, with whom do we run the largest deficits, with whom do we have surpluses, etc.? Do you think it is a problem if we run a trade deficit? Why or why not? In answering, keep in mind what impact a trade deficit has on other parts of our balance of payments.Which of the following may not be associated with a deficit? Select one: a. A need to increase borrowings b. Less foreign investment In the deficit economy c. Increased imports d. Lesser capital inflows e. Increased exportsMany governments take foreign loans. Are these loans beneficial for gross domestic product? Why, or why not?
- A government decides to introduce an expenditure-switching measure to reduce a balance of trade deficit. Which of the following is an expenditure-switching measure? Pick a,b,c, or d A. A government subsidy to domestic producers B. An increase in income tax C. An increase in the rate of interest D.A decrease in state benefitsSuppose a country was facing the problem of budget deficit and by reducing government expenditures the government has achieved the target of balanced budget. With the help of appropriate diagrams explain how a country’s shift from budget deficit to balanced budget would affect its investments, economic growth, net capital outflow and currency exchange rate?How could an increase in a nation's fiscal deficit increase its trade deficit?
- What is a foreign trade deficit or surplus? How does this affectinterest rates?Explain how current account and budget deficit (twin deficit) are related so that changes in one are reflected in changes in the other . thanks.If there is no trade deficit, budget deficit =$500, what is the difference between savings and planned investment in equilibrium?