The economy of a hypothetical country has been stable for two or three years with very low
1. What would be the likely impact on the government budget and national debt of the use of these fiscal policy tools (taxes, government expenditure, transfer payments, and interest rates)?
2. How would the use of these fiscal policy tools stabilize the economy?
Trending nowThis is a popular solution!
Step by stepSolved in 3 steps
- please explain the meaning of these terms in research writing Credibility: Transferability: Replicability: Trustworthiness: Positivists: Constructivists: IRB informed consentarrow_forwardAnalyze how fiscal and monetary policies may impact retirement plans. 1. Research how changes in fiscal policy and monetary policy can impact retirement savings. 2. This research should include how changes in policies, including interest rates, tax rates, and policies that impact savings (IRAs, 401k), can impact retirement plans.arrow_forwardThis year is 2023. You have saved $20,000 in your savings account to buy a new home. In addition, you also plan to withdraw the maximum from your Registered Retirement Savings Account (RRSP) under the Home Buyer's Plan (HBP). What would be the minimum conventional mortgage you could assume? Select one: a. $220,000 b. $140,000 c. $175,000 d. $225,000arrow_forward
- Suppose as a hypothetical scenario that you deposit $400 today into a savings account with a variable interest rate and will collect a payment in one year. True or False: If over the course of the year the interest rate falls, this increases the future value of your investment. True Falsearrow_forwardFinancial crises and market bubbles are inevitable in the global economy. In this module, we examined some of these financial crises, including: The European banking crisis in 2011 The oil price collapse in 2014 The emerging market turmoil in 2013 The Puerto Rican debt crisis in 2015 The crypto crash in 2018-2019 The COVID-19 pandemic financial crisis While none of these crises matched the scale of the Great Recession of 2008, they still had significant impacts on international markets. To find out about countries' financial information, you can use the resources listed in the Global Financial Information Resources document. Consider the past financial crises and market bubbles. In your discussion, address the following questions: What market indicators can help identify potential global financial crises? What do you anticipate could be the next global financial crisis? How has the global economy responded to the challenges of the COVID-19 pandemic? How do you think the COVID-19…arrow_forwardScenario: It is the year 2035, and many people in the United States are very happy with the state of the economy. Real GDP has risen steadily over the past year, unemployment is low, and workers are confident they will continue to be employed. People are buying homes, refrigerators, cars, and everyday goods. Inflation is rising though, and people are concerned that prices may be rising faster than their incomes. Nonetheless, the stock market is rising and people remain confident. Which of the following fiscal policy combinations by Congress would be appropriate to address this economic scenario? Increase both taxes and government spending at the same time Decrease both taxes and government spending at the same time Increase taxes and decrease government spending Decrease taxes and increase government spendingarrow_forward
- Several factors may influence interest rates for individual securities in an economy like the United Kingdom. One such factor is inflation. Explain fully how the factor may influence interest rates of individual securities in an economy.arrow_forwardRyan and Rebecca have 30 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and investment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of $6,250.00 per year. Use the following tables to answer the questions about future value interest factors. Interest Factors—Future Value Interest Factors—Future Value of an Annuity Excel Periods 3.00% 5.00% 6.00% 8.00% 9.00% 20 1.810 2.653 3.210 4.661 5.600 25 2.090 3.386 4.290 6.848 8.620 30 2.420 4.322 5.740 10.062 13.260 35 2.810 5.516 7.690 14.785 20.410 40 3.260 7.040 10.280 21.724 31.410 The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Garcia, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Complete the following table by…arrow_forward
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education