Other things equal, an increase in the government budget deficit increases business prospects. might not have...
Other things equal, an increase in the government budget deficit
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increases business prospects. |
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might not have any effect on interest rates. |
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drives the interest rate up. |
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drives the interest rate down. |
Homework Answers
rate positively .. let me know if you need any clarification .
correct answer is option - drives the interest rate up
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Other things equal, an increase in the government budget
deficit
increases business prospects.
might not have...
Expansionary fiscal policy that increases the budget deficit may Select one: a. increase business investment by...
Expansionary fiscal policy that increases the budget deficit may Select one: a. increase business investment by reducing interest rates b. increase business investment by increasing interest rates c. reduce business investment by increasing interest rates d. reduce business investment by reducing interest rates
(1) Other things being equal, which of the following will increase aggregate expenditures? Group of answer...
(1) Other things being equal, which of the following will increase aggregate expenditures? Group of answer choices An increase in domestic prices relative to foreign prices A decrease in the interest rate A decrease in real wealth An increase in income taxes A decrease in government purchases of goods and services (2) If the current unemployment rate is 5 percent and the natural unemployment rate is 6 percent, then the economy is Group of answer choices producing a level of...
Because ________ in the government budget deficit increase the real interest rate, budget deficits can ________...
Because ________ in the government budget deficit increase the real interest rate, budget deficits can ________ firm investment. decreases; increase increases; decrease decreases; decrease increases; increase When banks gain ________, they can ________ their loans; and the money supply ________. withdrawals; decrease; expands reserves; increase; expands withdrawals; increase; expands reserves; increase; contracts
28. Other things the same, a government budget deficit a. reduces public saving, but not national saving. (b. red...
28. Other things the same, a government budget deficit a. reduces public saving, but not national saving. (b. reduces national saving, but not public saving. c. reduces both public and national saving. d. reduces neither public saving nor national saving. 30. Other things the same, an increase in taxes with no change in government purchases makes national saving a rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply...
Assume the U.S. government was to decide to increase the budget deficit. This action will most...
Assume the U.S. government was to decide to increase the budget deficit. This action will most likely cause __________ to increase. A. interest rates B. education level C. unemployment D. tax
Agree or disagree (7 sentences) A budget deficit is when an individual, business, or government budgets...
Agree or disagree (7 sentences) A budget deficit is when an individual, business, or government budgets more spending than there is revenue available to pay for that spending. Deficits are the debts accumulated over time from the spending. It affects interest rates because the higher the deficit gets, the higher the interest rates go. When the budget deficits go up, the investment numbers decrease. This also tends to make economic growth decrease as well. So in conclusion, when the budget...
If the government increases taxes to address the budget deficit, then according to the multiplier effect...
If the government increases taxes to address the budget deficit, then according to the multiplier effect A.AD will increase by more than the change in taxes B.AD will increase by less than the change in taxes C.AD will decrease by more than the change in taxes D.AD will decrease by less than the change in taxes
This Question: 1 pt Compared to a balanced budget, when the government runs a budget deficit,...
This Question: 1 pt Compared to a balanced budget, when the government runs a budget deficit, O A. interest rates rise, and firms' private investment increases. OB. interest rates fall, and firms' private investment decreases. OC. Interest rates rise, and firms' private investment decreases. OD. Interest rates fall, and firms' private investment increases. Click to select your answer.
1. Which is not an effect of increases in gov. deficit spending? a) Capital inflow increase...
1. Which is not an effect of increases in gov. deficit spending? a) Capital inflow increase b)Increase in imports c)Increase in interest rates d)Decrease in exports e)Decrease in the trade deficit 2. The twin deficits effects is used to describe simultaneous deficits in the USA gov. budget and: a)International trade b)Monetary policy c)Gov. expenditures d)unemployment e)None of these 3. If an expansionary monetary policy increases the supply of US dollars, what effect will this have on the US dollar value...
it is budget surplus, rather than deficit 4. Suppose the market for loanable funds is current...
it is budget surplus, rather than
deficit
4. Suppose the market for loanable funds is current in equilibrium, with zero capital inflows or capital outflows and zero government budget deficit. (a) Using a supply and demand diagram, depict this situation. 5 points. (b) Suppose the government begins to run a budget surplus; assuming all else equal, depict the effect this will have on the interest rates and total lending. 5 points. (c) What effect will this deficit have on the...
28. Other things the same, a government budget deficit a. reduces public saving, but not national saving. (b. reduces national saving, but not public saving. c. reduces both public and national saving. d. reduces neither public saving nor national saving. 30. Other things the same, an increase in taxes with no change in government purchases makes national saving a rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply...
This Question: 1 pt Compared to a balanced budget, when the government runs a budget deficit, O A. interest rates rise, and firms' private investment increases. OB. interest rates fall, and firms' private investment decreases. OC. Interest rates rise, and firms' private investment decreases. OD. Interest rates fall, and firms' private investment increases. Click to select your answer.
it is budget surplus, rather than
deficit
4. Suppose the market for loanable funds is current in equilibrium, with zero capital inflows or capital outflows and zero government budget deficit. (a) Using a supply and demand diagram, depict this situation. 5 points. (b) Suppose the government begins to run a budget surplus; assuming all else equal, depict the effect this will have on the interest rates and total lending. 5 points. (c) What effect will this deficit have on the...
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