Explain the concept of an expansionary fiscal consolidation. Why is consolidation less likely to be expansionary...
Homework Answers
Expansion fiscal consolidation is a situation under certain limited circumstances such that the reduction in government spending which will reduce future tax rates or government spending will increase the private consumption thus resulting in overall expansion.
We are living in a globalized world where spillover effect are so strong that a policy undertaken in one part of world would lead to strong reprecursions all around the world that it lessen or nullify the effect of policy thus resulting in no change in parameters . Moreover we live in world where consumers anticipate the policy change so quickly and bring it into their information set that policy didn't have any effect on outcome.
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Explain the concept of an expansionary fiscal consolidation. Why is
consolidation less likely to be expansionary...
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Explain why there is a blurry line dividing objects that are "money" from those that are...
Explain why there is a blurry line dividing objects that are
"money" from those that are not.
(b) Give examples of some clear-cut cases, and some borderline
ones.
(c) Could the position of this blurry line change over
time?
(d) Why does the answer to (c) matter?
basically the Question is written in photo? and not the notes above
the picture
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1. Given the information in Table 1, in a two country and two-product Ricardian model, which...
1. Given the information in Table 1, in a two country and two-product Ricardian model, which of the following statements is (are) true? Table 1 Unit Labour Requirements T-shirt Brandy 4 hours 12 hours 6 hours 12 hours United States France A) The pretrade price ratio in France is 1 brandy - 2 T-shirts. B) The US pretrade price ratio is 1 brandy - 4 T-shirts. C) The US pretrade price ratio is 1 T-shirt = 1/3 brandy. D) The...
Explain why there is a blurry line dividing objects that are
"money" from those that are not.
(b) Give examples of some clear-cut cases, and some borderline
ones.
(c) Could the position of this blurry line change over
time?
(d) Why does the answer to (c) matter?
basically the Question is written in photo? and not the notes above
the picture
1. As we have discussed in class, though most countries have their own currency, country is not the same...
4. Use the concept of common resources to explain why wild salmon faces extinction while goldfish face no such danger. Hint: nothing to do with the fact that we eat salmon and goldfish are mostly pets. 5. Use the concept of elasticity and total revenue to explain why the government is more likely to tax gasoline and not fast food.
2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely to save, that is, sell a financial asset. B. more likely to save, that is, sell a financial asset. C. less likely to save, that is, purchase a financial asset. D. more likely to save, that is, purchase a financial asset. I. In 2. If commercial banks hold all their assets in the form of required reserves: A. only they will be able to...
1. Given the information in Table 1, in a two country and two-product Ricardian model, which of the following statements is (are) true? Table 1 Unit Labour Requirements T-shirt Brandy 4 hours 12 hours 6 hours 12 hours United States France A) The pretrade price ratio in France is 1 brandy - 2 T-shirts. B) The US pretrade price ratio is 1 brandy - 4 T-shirts. C) The US pretrade price ratio is 1 T-shirt = 1/3 brandy. D) The...
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