This study has conducted to find the effects of trade deficit on the economy of Pakistan in which trade deficit is the independent and gross domestic product, foreign direct investment exchange rate are the dependent variables. Depending on the availability of data we have selected the longest ...
Effect of Budget Deficit Financing on the Development of the Nigerian Economy: 1980-2008 The main objective of this study was to investigate the influence of government budget deficit financing on economic development in Nigeria. Six research hypotheses were formulated to evaluate the relationship betwee...
On the other hand, the impact of government expenditure on economic growth may not be automatic, as several factors can influence government expenditure and its translation into economic growth. Some factors that have been identified as moderating the role of government expenditure on economic growth ...
If the government spends $2,000 more and cuts taxes by $2,000, then what will be the effect on the economy and budget deficit? When would this be a good policy to use? Use an MPC of 0.80. Explain the effect of counter cyclical fiscal polic...
China's economy is the world's largest, thanks to being the number-one exporter. It built its growth on low-cost exports of machinery and equipment.
How tax cuts affect the economy depends on the type of tax being cut. In general, tax cuts boost the economy by putting more money into circulation. They also increase the deficit if they aren't offset by spending cuts. As a result, tax cuts improve the economy in the short-term, but...
occurs when the governmentspends more moneythan it collects intax revenues. To cover this deficit, the government may need toborrow fundsby issuinggovernment bonds. Theaccumulation of government debtresulting from deficits can put upward pressure on interest rates and contribute to the crowding-out ...
(by either the firm or the worker), nor does it discuss the effect of government policy levers that are important in the real world and that can affect the optimality of full defeasance. We are aware of no other papers that formally model optimal sponsor behavior in an economy populated by...
The crowding-out and multiplier effect theories are two opposing approaches to government intervention with the goal to stimulate the economy. They are both forms of deficit funding, which result in an increase in spending by the government. How much government spending and the so...
Does a Trade Deficit Signal a Bad Economy? A trade deficit isn't necessarily a bad sign for an economy. On the contrary, a deficit could be a signal that a country’s consumers are wealthy enough to purchase more goods than their country produces. ...