If net taxes exceed government expenditures, the government sector has a budget ________ and government saving is ________. A) surplus; positive B) surplus; negative C) deficit; positive D) deficit; negative

Q: 1. If NX=0, then savings must be equal to invesment   Select one:   True   False

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…

Q: Identify the statement as True, False, or Uncertain, and explain your reasoning in detail (graphs if…

A: Contractionary fiscal policy is defined as a decrease in government spending and an increase in…

Q: 6. Ricardian equivalence and the government budget constraint: Consider the intertemporal budget…

A: Answer in Step 2

Q: There is an increase in government expenditures financed by taxes and its overall short-run effect…

A: Government expenditure- It refers to the consumption investment and transfer payments that are made…

Q: The crowding-out effect stresses that an increase in government expenditures will stimulate…

A: The crowding out effect is a situation where involvement of government decreases the substantial…

Q: In a closed economy, the gross domestic product is $45,000, consumption is $17,300 and taxes are…

A: The government budget balance conveys the amount by  which taxes surpass the government spending. It…

Q: Under which condition can the government continue to accumulate debt? if it issues more bonds O ifit…

A: The debt of the government estimates how much the central government owes to its banks. The…

Q: Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly…

A:

Q: When the investment accelerator is large, expansionary fiscal policy is    likely to lead to a…

A: Expansionary Fiscal Policy:It is a form of fiscal policy which indicates an increase in government…

Q: The South African economy is in slump due to the Covid-19 lockdowns imposed in 2020, and the current…

A: Deficit spending is when the government spends more than it receives in revenue.

Q: Identify and explain the lags which must be taken into account to ensure optimality in interest rate…

A: Since you have posted multiple questions , I will solve the first one for you.

Q: “Crowding out” refers to the situation in whicha. borrowing by the federal government raisesinterest…

A: OPTION A Increase in government borrowing shifts the IS curve to the right. LM curve remains…

Q: If consumption is C=100+0.75Yd Taxes is T=50+0.5Y Export is X=200 Import is M=50+0.25Y…

A: Private disposable income is the sum of money available to an employee or family after income taxes…

Q: Assume a government that runs consecutive budget deficits and trade surpluses. They decide to…

A: The government budget balance is determined by the difference in government revenue and expenditure.…

Q: The response of firm investment to an increase in the government budget deficit is called…

A: Crowding out refers to the situation where the availability of capital for the private investor is…

Q: Consider a closed economy with fixed prices and wages. Suppose consumption function takes the form C…

A: The equilibrium output and budget deficit are as follows:…

Q: Consider the following consumption function: C (Y)=0.8(Y-T) where Y represents income and T…

A:

Q: The nation of Cantania regularly experiences changes in its national budget situation. In some…

A: Budget Deficit: Government spending > Government revenue Budget Surplus: Government spending <…

Q: If a country runs many consecutive budget deficits but the level of is high when compared to the…

A: Budget deficit: - Government budget deficit is the condition in which the government spends more…

Q: At the beginning of 2009, a government had a total debt of $540 billion dollars. It ended 2009 with…

A: A budget surplus happens when pay surpasses uses. The term frequently alludes to an administration's…

Q: Compare the traditional view versus the view of Ricardian equivalence of the effects of a…

A: a. According to the traditional view, the tax cut leads to reduces the national saving, since the…

Q: If the president and parliament agree on a policy to reduce the budget deficit by increasing taxes…

A: If the government deicides to adopt a contractionary fiscal policy by increasing the taxes,…

Q: its budget. What happens this year if the government announces that it will increase its spending or…

A: A budget is a financial plan for a specific amount of time, usually a year. It may also include…

Q: Solve the attachment

A: The cyclically adjusted budget balance, sometimes called the complete employment budget balance, is…

Q: Given the above information, assume the following: 1. For every 1% increase (decrease) in interest…

A: Given:- Consumption; C= $400 billion Investment; I= $200 billion Government spending; G= $100…

Q: If a country runs many consecutive budget deficits but the level of is high when compared to the…

A: In an economy, government budget deficit has a significant impact on its domestic as well as…

Q: given that,  consumption is C=100+0.75Yd Taxes is T=50+0.5Y Export is X=200 Import is M=50+0.25Y…

A: consumption is C=100+0.75Yd Taxes is T=50+0.5Y Export is X=200 Import is M=50+0.25Y Government…

Q: Suppose the government runs a budget surplus. Compared to a balanced budget, the real interest rate…

A: Since you have posted multiple questions, we will solve the first question for you. If you want any…

Q: Which one of the following statements is TRUE about the concept of crowding out? Select one: a.…

A: Fiscal policy refers to the set of measures adopted by the government of an economy to correct…

Q: What budget changes would have to occur in order to lower an annual deficit? Annual expenditures…

A: A government budget is a statement of its planned expenditures and revenue receipts for a given time…

Q: Suppose that the federal government ran a sizable budget surplus during the next decade. Compared to…

A: Traditional view: According to the traditional view, if the government runs a budget surplus, it…

Q: Nigeria typically runs a gov budget surplus, and it has a small debt to GDP ratio (approximately…

A: Budget is a set of financial statements recording the assets and liabilities, incomes and…

Q: government expenditure towards infrastructure increases and is deficit financed, then: a. The debt…

A: Government spending or use incorporates all government utilization, investments, and transfer…

Q: Explain government crowding out and how it occurs. How do government surpluses affect real interest…

A: The answer and explanation for both these questions is as follows:-

Q: Q.2.1.4 Identify two injection flows that are illustrated in this flow diagram. Q.2.1.5 From the…

A: Injections are such variables that add to the circular flow of income.

Q: 7. Which of the following is true about the annual budget prepared by the Government? * O It is a…

A: In an economy, government maintains a record of its spending and expenditures on yearly basis.

Q: What are the effects of a tax cut on consumption and savings in the presence of credit market…

A: Ricardian equivalence claims that the consequences on the national economy of funding government…

Q: In which of the following circumstances is expansionary fiscal policy more likely to lead to a…

A: In an economy, there is a multiplier impact on the real GDP and aggregate demand, when there is any…

Q: Suppose in our two-period model of the economy that the government, instead of borrowing in the…

A: Budget constraints can be defined as all the combination of goods and services that the customers…

Q: Analyze the effects of a government budget deficit.

A: Hey, thank you for the question. Since there are multiple questions posted, we will answer first…

Q: Assume that the nominal interest rate is 11 percent, the inflation rate is 8 percent, and government…

A: Inflation is the rise in general price level of goods and services over period of time. fisher…

Q: 10) Fiscal policy is defined as changes in federal ________ and ________ to achieve macroeconomic…

A: Demand is the total quantity of goods and services for which the consumers are willing to pay…