Explain Lerner view on debt financing

Q: Which of the following is included in G? Select one: a. medicare b. social security payments c.…

A: GDP stands for the gross domestic product of a country. It is the value of all the final goods and…

Q: Why would the private sector purchase government debt?

A: Government debt refers to government selling secuities and other instruments that are used to raise…

Q: How does the level of public debt decided by government who aims to achieve the planner optimal is…

A: *Answer:  Rate of discounting utility = σ So the total utility level given infinite time horizon = U…

Q: Explain the benefit principle and ability to pay approach with regard to tax equity. Which approach…

A: Benefit principal theory of taxation - In this theory citizens of a country are asked to pay tax…

Q: Contrast government debt with budget deficit or surplus

A: Budget deficit is the government expenditure dominating the government revenue in budget for a given…

Q: Q.Discuss Bangladesh's current debt-to-GDP ratio and identify the government's non-banking borrowing…

A: The economics as a study is based upon the idea that the resources which the economies have tend to…

Q: The difference between the gross public debt and the net public debt is that the a. gross public…

A: Public debt: - Public debt is that situation in which government expenditure exceeds government…

Q: Debt-GDP ratios and economic crises: Te debt-GDP ratio in Belgiumexceeded 120% in the early 1990s…

A: The debt-GDP ratio in Belgium exceeded 120% in the early 1990's and still the economy didn't…

Q: Tax rate rise when the income of the consumer rise in case of progressive tax system.  True/False

A: We have different types of tax system depending upon how the tax rate behaves with change in income.…

Q: What are the Principles of Public Debt Management?

A: Introduction - Getting control of your bills is the process of debt management.It entails keeping…

Q: Q)Which of these methods of government deficit finance is MOST likely to crowd out private…

A: Government budget deficit: It is the condition under which the expenditure of the government is more…

Q: What is a progressive income tax?

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

Q: what four (4) practical interventions should the government undertake to reduce its public debt…

A: There are different practical interventions should the government undertake to reduce its public…

Q: 1) Distinguish between discretionary and nondiscretionary fiscal policy.

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

Q: What two factors could reduce the net economic burden that might be shifted to future generations…

A: find below the answer.

Q: Ql: Discuss in details the impact of external debt on the performance of Jordanian economy, and how…

A: Any economy facing an excessive amount of foreign debt can hinder countries capacity which can be…

Q: Can the method of loan repayment also have a significant impact on taxes? How?

A: Yes, method of loan repayment also have a significant impact on taxes.

Q: What is public debt? Why public debt a burden on future generation?

A: Public debt refers to the entire amount borrowed by the government to meet its development budget,…

Q: Consider a family of four in 2008, whose poverty threshold is $22,024. If this family's total income…

A: Since you have asked multiple questions, we will answer the second question for you. If you want any…

Q: If the debt to GDP ratio ________, or if the debt to broad-money-supply ratio _______, Exter’s…

A: Broad Money:- Broad money refers to the quantity of money that is circulating in an economy. It is…

Q: WHich are two main types of debt instruments issued by the Australian Government?

A: Debt is an obligation that legally binds the borrower to pay back the lender the principal amount…

Q: Does the existence of credit market imperfections imply that there is a useful role for government…

A: Credit market imperfections means the financial market with low quality of information about the…

Q: Please help me find what are theories of Public Borrowing, starting from the Classical Theory of…

A: The following problem has been answered as follows:

Q: Why do most creditors prefer low debt ratios?

A: Debt to Equity(D/E) ratio is calculated  as: Total Liabilities/Shareholder’s Equity A low debt ratio…

Q: 1. Define a progressive income tax system.

A: A tax is imposed by the government to raise funds for its expenditures. It may be progressive,…

Q: Q.1.7 A budget deficit occurs when:  (a) there is an increase in taxation. (b) government spends…

A: In an economy, government budget refers to the record of total expected expenditure and revenue of…

Q: Unlike households, governments are often able to sustain large debts. For example, in 2019, the U.S.…

A: The debt-to-GDP ratio is the ratio between government debt and the gross domestic product of a…

Q: Explain how the federal government finances and services its outstanding debt

A: Government debt, or national debt, is formed from all prior budget deficits of an economy accrued,…

Q: The Swedish Fiscal Policy Council discusses public debt policy in a low interest environment in…

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: Explain the benefit principle and ability to pay approach with regard to tax equity. Which approach…

A: Benefit principal theory of taxation - In this theory citizens of a country are asked to pay tax…

Q: Explain the 3 features of ideal fiscal policy?

A: The use of government spending and tax policies to impact economic conditions, notably macroeconomic…

Q: If in response to this situation, the government decides to increase taxes enough to stabilize debt,…

A: Answer- Need to find- If in response to this situation, the government decides to increase taxes…

Q: One area of concern with regard to national debt is the burden it may place onfuture generations.…

A: The national debt includes all kinds of borrowings made by the government to meet its expenses.…

Q: What are the factors that will determine the size of some future required tax increase to pay off…

A: Although lowering debt and boosting the economy are the general aims of most policymakers in…

Q: True or False: Negative debt always carries a high interest rate and high fees.

A: A negative debt for a company or organization means that the company is in a situation where its…

Q: Explain Debt Management?

A: Debt refers to the sum of money that is owed by an individual or corporation to the lending party.…

Q: Ghana has continually seen an increase in its public debt stock from one government to another.…

A: The increase in public debt in Ghana has been due to the necessity to fund fiscal deficit, issuing…

Q: Explain the relationship between changes in the economic structure of direct tax revenues!

A: For developing and emerging economies,  a sufficient amount of tax revenues are a necessity for a…

Q: Define and give examples of the macro- and micropolitics of public budgeting.

A: To find : Example of public budgeting.