Question

read the following sentences in a newspaper. what do u understand from these sentences? please interpret...

read the following sentences in a newspaper. what do u understand from these sentences? please interpret them and write what do they imply max. in 5 sentences

A) “since US has a large budget deficit we expect an increase in japanese interest rates as well.

B) “the cost of borrowing by U.S. firms is dictated by the degree to which the federal government spends more than it taxes."

0 0
Add a comment Improve this question Transcribed image text
Answer #1

A)

As US face more and more deficit, the deficit amount has to be borrowed from the countriea like Japan so as the deficit increases US will borrow more fund from Japan and due to increase in demand of funds the Interest Rate in Japan will rise.

B)

As the government spendings crowding out it will demand more lonable funds, and causes to increase in the interest rates so the cost of borrowing by the private sector will rise.

Thanks For Posting

I Hope my efforts will be fruitful to you...?

Add a comment
Know the answer?
Add Answer to:
read the following sentences in a newspaper. what do u understand from these sentences? please interpret...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Based on the below excerpt from an Economics textbook, please answer the question below the text:...

    Based on the below excerpt from an Economics textbook, please answer the question below the text: Over the years, the federal government budget experiences imbalances. A budget deficit occurs when federal expenditures (including both spending on final goods and transfer payments such as social security benefits, welfare, unemployment benefits etc.) exceed tax revenues collected by the federal government for that fiscal (budget) year. A surplus occurs when the government collects more in taxes than it spends. For example, for four...

  • E Question Help Gven te information provided by en news clp. what would Congress do ส it wanted to stop the government's debt from increasing? Congress would have to us. Ran S...

    E Question Help Gven te information provided by en news clp. what would Congress do ส it wanted to stop the government's debt from increasing? Congress would have to us. Ran S43 Billion B The U.S. government received $232 billion and spent $275 billion in July. The deficit of $43 bilion edged the government's debt closer to the federal borrowing limit Source: The Wall Street Journal, August 10. 2017 O A. borrow from the rest of the world O B....

  • Pleased read carefully I need solutions of questions 3 and 4. 1. 1151 The graphic below...

    Pleased read carefully I need solutions of questions 3 and 4. 1. 1151 The graphic below shows actual inflation (this is labeled "headline inflation" in the chart) and inflation targets for a number of countries in 2014 Australia Using only information in the chart and frameworks developed in this class (i.e., not subsequent events), please answer the following questions: a. [5 points] At the time of the chart, which monetary policy would you have recommended for Sweden? Please explain in...

  • 9.What is Say’s Law and what do classical economists say about prices, wages, and interest rates?...

    9.What is Say’s Law and what do classical economists say about prices, wages, and interest rates? What are the three states of the economy in relating the real GDP to natural real GDP? In a recessionary gap, is there a surplus or a shortage of production? What does that imply about the labor market and how wages may change? Understand the differences between a recessionary gap, inflationary gap, and long run equilibrium. How is the physical production possibilities frontier (PPF)...

  • 5) In recent weeks the stock markets in the Wall Street has show an unexpected level...

    5) In recent weeks the stock markets in the Wall Street has show an unexpected level of ups and downs mainly attributed to the uncertainty of healthcare reform under Trump administration and retail stores closing such as Macys’, JCPenny, Sears, another possible cutting govt. programs (in an effort to reduce budget deficit). In the process, the value of the $ has risen against the Euro, the Yuan (Renminbi), yen and many other currencies. A) Given the current condition of the...

  • I need solutions of question 2,3 and 4. 1. 151 The graphic below shows actual inflation...

    I need solutions of question 2,3 and 4. 1. 151 The graphic below shows actual inflation (this is labeled "headline inflation" in the chart) and inflation targets for a number of countries in 2014 September 2014 or latest Senden! South Korea United States Australia Japan India Using only information in the chart and frameworks developed in this class (ie,not subsequent events), please answer the following questions a. [5 points] At the time of the chart, which monetary policy would you...

  • I need answers of question 3 and 4. 1. 151 The graphic below shows actual inflation...

    I need answers of question 3 and 4. 1. 151 The graphic below shows actual inflation (this is labeled headline inflation" in the chart) and inflation targets for a number of countries in 2014 September 2014 or ltest Seeden South Korea Japan India Using only information in the chart and frameworks developed in this class (i.e., not subsequent events), please answer the following questions a. [5 points] At the time of the chart, which monetary policy would you have recommended...

  • DQuestion 36 2 pts The following table shows the number of U.S. dollars required to buy...

    DQuestion 36 2 pts The following table shows the number of U.S. dollars required to buy one British pound and the number of U.S. dollars required to buy one euro between February 1, 2016, and September 1, 2016: U.S. Dollars Required U.S. Dollars to Buy 1 British Pound 1.429 Required to Buy 1 Euro 1.1092 Date February 1, 2016 March 1, 2016 1.425 April 1, 2016 1.432 May 1, 20161.452 June 1, 2016 1.420 July 1, 20161.313 August 1, 2016...

  • Which of the following describes what the Reserve Bank of Australia would do to pursue an...

    Which of the following describes what the Reserve Bank of Australia would do to pursue an contractionary monetary policy? Use open market operations to buy bonds and securities. Use open market operations to sell bonds and securities Use open market operations to increase the overnight cash rate. Increase interest rates on mortgages and corporate loans. The Reserve Bank of Australia manages the supply of cash on a daily basis to ensure that every bank has sufficient cash to meet the...

  • l Telenor PK 4G 9:50 AM ④ 32% 10 Back HW23 1. 15] The graphic below...

    l Telenor PK 4G 9:50 AM ④ 32% 10 Back HW23 1. 15] The graphic below shows actual inflation (this is labeled headline inflation in the chart) and inflation targets for a number of countries in 2014 Undershooting September 2014 or latest Output ga Infation target I Headine CPI ICore CP srael Euro area Britain! South Korea United States* China Canada Japan India Brazil "Excludes food and erer y escept!bd. nortgagetterest and adjusted for taxes: Ed energy, food, alcohol and...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT