if the government budget deficit equals $240 billion and the money supply increases by $100 billion, how much must the government borrow

Q: What are the president's budget request responsibilities?

A: President's budget request: The budget process in the U.S begins when the President submits a budget…

Q: Describe three ways in which government spending can be financed

A: Government spending on goods and services is one of the major components of aggregate demand.…

Q: What is meant by fiscal policy? How far can it be used to ensure, a high level of employment?

A: In a market economy, decisions are taken by the market forces and the government has limited…

Q: budgets $30 per week for transportation. To get around, he can either drive his car (D) the city bus…

A: Given ,  Total Income  = 30  Price of Driving = 5 Price of Bus ride = 2  Budget constraint or budget…

Q: What would be the Primary deficit if fiscal deficit is 77 and Interest payment is 66?

A: Interest payments are the expense of acquiring cash. The borrower makes these payments as well as…

Q: How will the deficit for the bottom line budget of $3.1 trillion affect the economy?

A: The budget deficit would result in the increase of the government expenditures over the revenues.…

Q: Which of the following will lead to expansionary fiscal policy? Select all that apply: reduction in…

A: Fiscal policy refers to the use of government spending, and taxation to influence the economy. It is…

Q: State any two objectives of fiscal policy?

A: According to the given question Gradually we can say that fiscal policy always leads to the…

Q: What would be the value of interest payments if primary deficit is $27,000 million and the fiscal…

A: The data presented in the question is as follows:- Primary deficit = $27,000 million Fiscal deficit…

Q: What are the consequences of a high Debt to GDP ratio for the economy?

A: The debt-to-GDP ratio is the ratio of a country's government debt and its gross domestic product…

Q: Should fiscal policy encourage more consumption or more saving? Does it matter? I need a reason why.

A: The fiscal (F) and monetary (M) policies help to control and maintain economic fluctuations such as…

Q: What policy might the federal government implement with regard to taxes and spending to help stop…

A: Fiscal policy refers to the changes in the federal government purchases and taxes, which are…

Q: What are the implications of the current fiscal stimulus and low interest on the future of our…

A: A stimulus package is defined as a coordinated measure by the government to lift the economy out of…

Q: How does fiscal policy affect the equilibrium income in an economy

A: The fiscal policy is the use of government revenue (taxes or tax cut) and the government…

Q: If tax cuts don't cause enough economic growth,  we might also need to reduce expenditures to reduce…

A: Increase revenue or decrease spending are the two ways to reduce a budget deficit.  Tax cuts are…

Q: What is fiscal policy and why it’s important?

A: Fiscal policy is used to control the affects of business cycles in the economy. In times of…

Q: how to reduce the debt gdp ratio for macro

A: The debt-to-GDP proportion is the measurement contrasting a country's public debt with its (GDP).

Q: What is the reason why fiscal policy should be in tune with monetary policy when the economy is in…

A: Fiscal policy can be defined as government policies and the spending pattern that the government…

Q: How does fiscal policy determine the rules of the market? Who controls the rules of the market?

A: Fiscal coverage refers to the government's use of taxation and expenditure measures to influence the…

Q: How could the government lower the federal deficit?

A: A government deficit occurs when the spending (subsidies, pensions, infrastructure, and other…

Q: What is an expansionary gap? What fiscal policy might close that gap?

A: Answer: Introduction: Expansionary gap: when the actual output level exceeds the potential output…

Q: what is the concept of fiscal policy?

A: Government is a unit or a group of people who runs the economy. This unit collectively makes various…

Q: How could fiscal policy alleviate the problem? What specific policy changes would be needed?

A: Everything involving public funding or taxes is referred to as fiscal. Fiscal policy refers to how…

Q: What are the three functions that a commodity must fulfill to be useful as money?​13.​Why can’t food…

A: A barter system is a way of exchanging goods and services. This method has been in use for decades,…

Q: Calculate fiscal deficit when Borrowings is $15,000 and the interest is $600

A: # Fiscal deficit is the difference between total expenditure and total receipts or spending of the…

Q: What effect did the economic program have on the federal deficit?

A: ECONOMIC PROGRAM: Economic programs are the programs formed to improve the economy of the United…

Q: What is the importance of studying the national budget and how it will affect our economy?

A: national budget is important because of following reasons :- 1. Hepls in allocation and distribution…

Q: Calculate the interest payments when Fiscal deficit is $18,000 and the primary deficit is $10,000

A: # we know that the sum of primary deficit and interest payment always gives us the value of fiscal…

Q: when there is a budget deficit, wha happens to the S+KI curve

A: Understanding the effects of a budget deficit on the macroeconomic factors of savings, capital…

Q: If you were the Prime Minister of Malaysia, what would you do to reduce the fiscal deficit of the…

A: In Malaysia, it can be seen that the debt to GDP ratio is very high due to which government is…

Q: Why do you think that expansionary fiscal policy can fail during a recession?

A: Recession is a situation in the economy, when there is general decline in the economic activity. For…

Q: What are the three fiscal policy tools and how would each be used to counter a contractionary gap?

A: Fiscal policy tools are the revenue and expenditure tools of the government undertaken to accomplish…

Q: Briefly analyse the various policy measures that a government might have to undertake to deal with…

A: A fiscal deficit is a discrepancy between a government's revenue and expenditures. Spending over its…

Q: The Government has a $0.8 Trillion Growth target. What fiscal policy should they implement if MPS =…

A: To stimulate growth, government uses expansionary fiscal policy, by increasing spending (G) or…

Q: Distinguish between deficit and debt.

A: Deficit refers to the outflow of money that is greater than the inflow of money. For example, a…

Q: Assume today is October 20, 2021. In which quarter of fiscal year 2022 is the federal budget?

A: The federal budget is the government's estimate of revenue and spending for each fiscal year. The…

Q: If the total receipts are $1200 billion and total expenditure is $1500 billion then how much will be…

A:

Q: Why Krugman believe that fiscal austerity in france or more generally in Europe would fail?

A: Fiscal austerity is used to define the steps or the direction taken by government which leads to…

Q: What is one thing we know and one thing we don’t know about how fiscal policy works?

A: One thing we know about how fiscal policy works is that it can be used by governments to influence…

Q: What is meant by revenue deficit and what does it indicate

A: There are three main deficit of any government which are:- (1) Revenue deficit (2) Fiscal deficit…

Q: Explain what is Fiscal policy and how to use it in order to overcome the current inflationary…

A: Inflation is the rate at which the general level of prices for goods and services is increasing over…