Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 32, Problem 3.2P
Subpart (a):
To determine
The argument.
Subpart (b):
To determine
The problem for monetarists and supply side economists.
Subpart (c):
To determine
The supply side and monetarist arguments.
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In the fiscal year 2019, the projected U.S. federal government deficit totaled $960 billion, which is 23.2 percent higher than a year earlier. Given the information in the news clip, what was the total change in U.S. national debt during the fiscal years 2018 and 2019?
In which of the following cases does the size of the government’s debt and deficit indicate potential problems for the economy? Explain your answer.
a) The government’s debt is relatively low, but the government is running a large budget deficit as it builds a high-speed rail system to connect the major cities of the nation.
b) The government’s debt is relatively high due to a recently ended deficit-financed war, but the government is now running only a small budget deficit.
c) The government’s debt is relatively low, but the government is running a budget deficit to finance the interest payments on the debt.
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Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
Q.1.1 An increase in the budget deficit is the result of: (a) Expansionary monetary policy;(b) Contractionary monetary policy;(c) Expansionary fiscal policy;(d) Contractionary fiscal policy.
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Principles of Economics (12th Edition)
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