Answered: Spending funds obtained by borrowing…

Spending funds obtained by borrowing instead of taxation. A. Merit Good B. Zero based Budgeting C. Deficit Spending D. Fiscal Policy

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 13SCQ: What is the main advantage of automatic stabilizers over discretionary fiscal policy?

See similar textbooks

Related questions

Q: In the late 1990s, car leasing was very popular in the United States. A customer would lease a car…

A: According to the question, A customer would lease a car from the manufacturer for a set term,…

Q: Question: Hilda's Hair Hysteria earned $3, 750 in total revenue last month when it sold 125…

Q: War Street Journal in 2021 observed, "And, while bitcoin is referred to as a digital currency. it…

A: Digital money is a type of cash that is accessible just in computerized or electronic structure. It…

Q: To price-discriminate, firms must identify a customer's or a group of customers' willingness to pay.…

A: Price discrimination refers to the policy of a monopolist firm to charge different prices from…

Q: Question 5 A function g(z) is strictly increasing if g'(z) > 0 on its domain. Assume the supply and…

A: Given information Qs=S(P)--- quantity supplied is the function of P Qd=D(P+T,Y)---quantity demanded…

Q: Possible solution in a post normal perspective about regaining the economy of a third world country.

A: Third world economy Third world economy stands for the countries which are less developed. These…

Q: The marginal cost of supplying another unit of output of an electronic product on the internet is…

A: Marginal cost is the cost incurred on one additional unit produced as output

Q: Using the Lucas Island model show that random shocks to the money supply will impact output while…

A: Lucas Island Model given by Robert Lucas. It is an economic model which shows the relationship…

Q: A major difference between a monopolist charging only one price and a perfectly competitive firm is…

A: When talking about forms of market z monopoly market is completely different from perfectly…

Q: Question Three Firm's Demand for Labour in the Short Run a) What are the two profit-maximizing…

Q: Explain the relationship between a forward contract and a swap.

A: Derivatives are financial instruments whose value is determined by one or more underlying…

Q: In long-run equilibrium, the marginal social cost exceeds the marginal private cost, but the…

A: Oligopoly is a market with few large firms selling homogeneous or differentiated goods

Q: III. In a particular very small region, the consumer price index, C, depends on the current valuc of…

A: Inflation means the rise in the price level of goods and services over a period of time. The rise in…

Q: How do investors spend in economy?

A: Any entity or person who purchases capital having an expectation of receiving financial returns in…

Q: In this topic, you are to research globalisation. The business press bombards us with ideas about…

A: Globalization is a process of exchange of products, beliefs, culture, ideas and business operations…

Q: 4. In a CDS the accrual payment is a payment made by CDS and occurs when the to CDS defaults a.…

A: A Credit Default Swap (CDS) is a contract between two parties related to a credit derivative. In…

Q: What is GDP per capita? What for do we use GDP per capita?

A: "GDP measures the market value of all the final goods and services produced in a nation at a…

Q: “The legal sector has been among the fastest to race back to the office this year. Amid a rise in…

A: Corporate culture Corporate culture stands for attitude and practices that determine how the…

Q: Consider two economies, one called the domestic country and the other the foreign country. Given the…

A: Balance of Payment = Credits received from foreign country - Debit paid to foreign country Domestic…

Q: explain how taxes and subsidies can be used to internalize externality. Next, give an example of the…

A: Tax is an obligatory instalment to the public authority by the pay gatherings. The subsidy is an…

Q: Use the graph to answer the question that follows. Without government intervention, this market…

A: The action that is taken by the government seeking to change decisions that are made by groups,…

Q: The supply and demand curves for bananas are as follows: QD = 3,750 - 725P QS = 920 +…

A: Equilibrium is the situation where demand and supply are equal and both curve interaction determine…

Q: If the first payment of $12,000 is received now, what is the present worth of a certain contract,…

A: The present value method is an equivalency method in which a project's cash flows are discounted to…

Q: explain when and how the government intervenes in the economy

A: In a free market economy, the resources of production are usually owned by the private individuals…

Q: You are given the market demand function Q = 1000 – 1000p, and that each duopoly firm's marginal…

A: The simple Cournot assumption is that every company chooses its quantity, taking as given the amount…

Q: How would the creation of an import quota affect the market for a good? Imported supply increases…

A: Import quota puts restrictions on quantity that can be imported.

Q: Determine which option, if any, should be chosen based on net present worth using a 8% interest…

A: Introduction Data ( Initial cost and annual benefit) related to two alternative such as alternative…

Q: at a country is endowed with 47 reserve. rginal willingness to pay for oil in d is given by P = 10 –…

A: *Answer: Given that , Marginal willingness to pay = demand curve equation : P = 10 - 0.31q MC…

Q: Question 7 Suppose that there is fear of a possible war in the future, reducing consumer confidence…

A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Click to see additional instructions Suppose we estimate a regression of the gallons of paint sold…

A: 5 of 8 Estimated regression equation, in insights, an equation developed to show the connection…

Q: more debt every year while its output is greater than potential output and its economic growth is…

Q: What could the remedy be in this case? Could the buyer even have a right to compensation, even if…

A: The International Sales Contract Advisory Council (CISG-AC) has the responsibility of governing…

Q: Explain how the development of railroads led to the integration of global wheat markets in the…

A: Development of Railroads The railroads are firstly developed by Britain. The railroads are…

Q: Company Alpha produces its product in a perfectly competitive market that is in long-run…

A: In a perfectly competitive market there are large number of firms producing similar and identical…

Q: Question Three Firm's Demand for Labour in the Short Run a) What are the two profit-maximizing…

A: the labor demand s is the quantity of work hours that the business will recruit in view of the…

Q: Discuss the measures that the UK government are taking to mitigate tax avoidance and tax evasion?

A: One sign of tax evasion is the amount of unreported income, which is the difference between the sum…

Q: Suppose a firm's total cost and marginal cost are given by TC = 192 + 10Q + 3Q² and MC = 10 + 6Q.…

A: Average total price is called the sum general of all manufacturing prices divided with the aid of…

Q: explain why the positive externality associated with the production of a pure public good implies…

A: Externalities are side effects which are borne by the third parties. Externalities could be…

Q: A tire dealer buys 4000 tires a year from a local distributor. Each tire costs $75, the ordering fee…

A: The above question is based on the concept of "Economic Order Quantity". The problem is regarding…

Q: A farmer can plant up to 8 acres of land with wheat and barley. He can earn $5,000 for every acre he…

A: Given:- x=number of acres of wheat y=number of acres of barley p=total profit that can be earned To…

Q: PROBLEM NUMBER 1 A farmer can plant up to 8 acres of land with wheat and barley. He can earn…

A: A company's optimal point is when it is producing a large amount of items at the lowest feasible…

Q: Upon purchase of a brandnew asset, the capitalized cost would be different from its replacement…

A: Depreciation means the reduction in the value of fixed assets over period of time. It help to…

Q: The price-demand equation, D(x), and the price-supply equation, S(x), of a Slow Cooker are given…

A: Since you have posted a question with multiple subpart, we will solve first three subpart for you.…

Q: After Hurricane Katrina there was a need to replace outdated hydraulic flood control pumps in New…

A: following are some points to Remain Safe After a Hurricane 1. Avoid floodwater.2. Never utilize a…

Q: C. What is the average growth rate per year of these two time periouds?

A: GDP deflator is the ratio of nominal GDP and Real GDP . GDP deflator = (Nominal GDP / Real GDP )*100…

Q: 1. An individual has a utility function, U(q,42) = /91 92). %3D (Mathematical assistance: Vx = x2).…

Q: Would reducing inequality have any benefits for society in general? Specifically, would reducing…

A: Income, age, sex, sexual orientation, handicap, color, ethnicity, class, religion, and opportunity…

Q: 6. In the country Gamma, it takes 6 hours to produce 1 automobile and 1 hour to produce a bale of…

A: A country or an individual is said to have a comparative advantage if it can produce the good at a…

Q: Consider the following economy with two goods, x and y, and two consumers, A and B. The tastes of…

A: Pareto -efficient points refers to those equilibrium points deviating from which no person can be…

Q: For each of the following transactions, 1) determine whether it should be included in the…

A: Gross domestic product is the sum total of final values of services and goods produced in a year.

Question

Spending funds obtained by borrowing instead of taxation.

A. Merit Good
B. Zero based Budgeting
C. Deficit Spending
D. Fiscal Policy

Rules by which an authority (usually a government) imposes a financial obligation on individuals or organizations within its domain. Property or transactions can be taxed. While taxes are primarily intended to fund the operation of a government, many tax laws are created to encourage or discourage certain behaviors by citizens or companies.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Under what general macroeconomic circumstances might a government use expansionary fiscal policy? When might it use contractionary fiscal policy?
What are some of the ways fiscal policy might encourage economic growth?
During the Great Recession of 20082009, what actions would have been required of Congress and the President had a balanced budget amendment to the Constitution been ratified? What impact would that have had on the unemployment rate?
What is the main reason for employing contractionary fiscal policy in a time of strong economic growth?
A government starts off with a total debt of $3.5 billion. In year one, the government runs a deficit of 400 million. In year two, the government runs a deficit of 1 billion. In year three, the government runs a surplus of 200 million. What is the total debt of the government at the end of year three?
What is the main advantage of automatic stabilizers over discretionary fiscal policy?
What is the main reason for employing expansionary fiscal policy during a recession?
Give some examples of changes in federal spending and taxes by the government that would be fiscal policy and some that would not.
Explain how automatic stabilizers work, both on the taxation side and on the spending side, first in a situation where the economy is producing less than potential GDP and then in a situation where the economy Is producing more than potential GDP.
When governments run budget deficits, how do they make up the differences between tax revenue and spending?
Is expansionary fiscal policy more attractive to politicians who believe in larger government or to politicians who believe in smaller government? Explain your answer.
What would happen if expansionary fiscal policy was implemented in a recession but, due to lag, did not actually take effect until after the economy was back to potential GDP?