In most macroeconometric models a larger budget defict appreciates a nation's currency only to the extent that it drives up the differential between interest rate at home and abroad. In contrast, in the pioneering work of Mundell, a rise in the budget deficit app eciates the currency without...
Define the term budget deficit. What causes a budget deficit and a budget surplus? If a government runs a budget deficit of $10 billion dollars each year for ten years, then a surplus of $1 billion for five years, and then a balanced budget for another ten years, what is the government...
1.Which one of the following best illustrates theaccelerator process? A. A changein one of the components of aggregate demand leading to a much greater increasein national income B. Anincrease in national income resulting in a proportionately larger rise ininvestment C. Governmentsubsidies to firms...
B. The government taking action to increase theexchange rate of the pound C. An increase in governmentexpenditure accompanied by a growing budget deficit D. The implementation of supply-side policiesthat are designed to raise labour productivity 9.There is an output gap when A. productivity is h...
government budget deficit? Give examples. What is a budget deficit, or a budget surplus? A) What are some of the causes of deficits since the 1800's? B) How does the government raise the money to finance the deficits? Under what conditions will a larger budget deficit cause a trade ...
Budget Deficit: When the revenue in the country exceeds the expenses in the country, it is said to be a budget deficit. It leads to an increase in the level of price in the economy. It also promotes inflation in the country. Answer and Explanation:1 ...
Instead of ceasing the arms sales, it has sold weapons at a larger scale and with enhanced capability including assault weaponries such as anti-radiation missiles, heavy weight torpedoes, and F-16V fighter jets. To date, the total volume of US arms sale...
4.Fiscal Policy财政政策一般会跟Budget deficit结合起来,大家在做出对政策的评估时一定要考虑到会对政府的财政预算带来什么影响 Instruments: Government spending and taxation Influence AD: Expansionary/Deflationary Fiscal Policy Influence AS: Reduce income and corporation tax to encourage spending and investment; ...
19. Congress is debating whether to raise taxes by $100 billion or decrease spending by $100 billion in order to eliminate a budget deficit. Which action will have the larger effect on equilibrium GDP? a.the increase in taxes b.the decrease in spending c.the effects will be equal d.not...
budget for photography has been cut.We had a reallytight budget.on/within budget(=not using more money than planned)The project was completed within budget.under budget(=using less money than planned)If you come in under budget, everyone will be very impressed.over budget(=using more money ...