Homework Answers
The increase in government expenditure in infrastructure will induce more investment in private sector. The government expenditure in roads, railways, airways, bridges, telecommunication, power generation etc create more opportunities in private sector investment.
Answer: A reduction of government salary payments matched with an identical increase of government expenditure on infrastructure in that country.
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Which change would by itself allow for more investment in a country? A reduction of government...
What is crowding out? O a reduction in consumption and investment spending that results from government...
What is crowding out? O a reduction in consumption and investment spending that results from government borrowing O a reduction in consumption and investment spending that results from increased international trade O a reduction in government borrowing resulting from increases in consumption and investment spending O a reduction in investment, but not consumption, that results from government borrowing O a reduction in consumption, but not investment, that results from government borrowing are a mechanism by which crowding out occurs. OIncreases...
a. In which instance would "crowding out" likely become a concern? Prior-year budget surpluses allow the government to...
a. In which instance would "crowding out" likely become a concern? Prior-year budget surpluses allow the government to use saved funds to reduce taxes. In order to increase spending on infrastructure, the federal government decides to borrow funds. O A balanced budget law prevents the government from taking fiscal action during a recession. b. What becomes more difficult if "crowding out" occurs due to fiscal action? Making economic investments Purchasing stocks and other financial investments Saving income for future purchases
The official settlements account of a country measures borrowing and lending between the country's residents and...
The official settlements account of a country measures borrowing and lending between the country's residents and foreigners. the net increase or decrease in the country's official reserves. the receipts from goods and services bought and sold and transfers to and from foreigners. net transfer payments between the country's citizens and foreigners. Component Amount (billions of dollars) Gross investment 1300 Personal consumption expenditure 1475 Depreciation 25 Government expenditure on goods and services 1315 U.S. imports 260 U.S. exports 249 Compensation of...
1). Given a marginal propensity to consume = .8 (Ceteris paribus) and the government increases the...
1). Given a marginal propensity to consume = .8 (Ceteris paribus) and the government increases the level of transfer payments by $100, we should expect that the GDP will increase by a. $500. b. $80. c. $100. d. $400. 2). Suppose that actual GDP (Y) for France is 100 euros and: Consumption = 10 + .5Y Investment Spending = 5 Government Expenditure = 20 The Marginal Tax Rate (t) = .20 At these current levels, the size of the budget...
a. In which instance would "crowding out likely become a concern? O Prior-year budget surpluses allow...
a. In which instance would "crowding out likely become a concern? O Prior-year budget surpluses allow the government to use saved funds to reduce taxes. In order to increase spending on infrastructure, the federal government decides to borrow funds. O A balanced budget law prevents the government from taking fiscal action during a recession. b. What becomes more difficult if "crowding out occurs due to fiscal action? O Purchasing stocks and other financial investments Making economic investments Saving income for...
26. are The four components of planned aggregate expenditures a. Consumption, investment, inventories, and government purchases....
26. are The four components of planned aggregate expenditures a. Consumption, investment, inventories, and government purchases. b. Consumption, planned investment, unplanned changes in inventory, and exports. c. Consumption, investment, government purchases, and net exports. d. Consumption, investment, exports and imports. 27. The aggregate demand (AD) curve slopes downward indicating that a. an increase in the general price level will reduce the aggregate quantity of goods and services demanded. b. an increase in the general price level will increase the aggregate...
Which would most likely shift the aggregate supply curve? A change in the prices of _____....
Which would most likely shift the aggregate supply curve? A change in the prices of _____. domestic products foreign products financial assets resources A decrease in aggregate demand in the short run will reduce _____. both real output and the price level the price level and increase the real domestic output the real domestic output and have no effect on the price level the price level and have no effect on real domestic output The economy's long-run AS curve assumes...
Questions: c) An emergency tariff on a wide range of imports would be effective in addressing...
Questions: c) An emergency tariff on a wide range of imports would be effective in addressing U.S deficits and forcing other nations to purchase more U.S. exports; d) One reason the U.S. does not export more is lagging investment in domestic industries. Why Protectionism Cannot Cure the Trade Deficit The causal link between investment flows, exchange rates, and the balance of trade explains why protectionism cannot cure a trade deficit. In his 1997 book, One World, Ready or Not, Washington...
9.) Ceteris panbus, which of the following would not cause a change in the demand for...
9.) Ceteris panbus, which of the following would not cause a change in the demand for mopeds? (A) A decrease in consumer incomes (B) A decrease in the price of mopeds (C) An increase in the price of bicycles (D) An increase in people's tastes and preferences for mopeds 10.) "Rising oil prices have caused a sharp decrease in the demand for oil." Speaking precisely, and using terms as they are defined by economists, choose the statement that best describes...
(1) If the world price is above the domestic equilibrium price, the domestic country is likely...
(1)
If the world price is above the domestic equilibrium price, the
domestic country is likely to ____________________ the good.
(2)
The difference between what an economy sells to and buys from
foreigners is _________________.
(3)
The idea that exchange rates and prices adjust to equalize the
cost of living across international boundaries is called
__________________________.
(4)
In the graph below, when the world price is $3, how many units
are...
What is crowding out? O a reduction in consumption and investment spending that results from government borrowing O a reduction in consumption and investment spending that results from increased international trade O a reduction in government borrowing resulting from increases in consumption and investment spending O a reduction in investment, but not consumption, that results from government borrowing O a reduction in consumption, but not investment, that results from government borrowing are a mechanism by which crowding out occurs. OIncreases...
a. In which instance would "crowding out" likely become a concern? Prior-year budget surpluses allow the government to use saved funds to reduce taxes. In order to increase spending on infrastructure, the federal government decides to borrow funds. O A balanced budget law prevents the government from taking fiscal action during a recession. b. What becomes more difficult if "crowding out" occurs due to fiscal action? Making economic investments Purchasing stocks and other financial investments Saving income for future purchases
a. In which instance would "crowding out likely become a concern? O Prior-year budget surpluses allow the government to use saved funds to reduce taxes. In order to increase spending on infrastructure, the federal government decides to borrow funds. O A balanced budget law prevents the government from taking fiscal action during a recession. b. What becomes more difficult if "crowding out occurs due to fiscal action? O Purchasing stocks and other financial investments Making economic investments Saving income for...
26. are The four components of planned aggregate expenditures a. Consumption, investment, inventories, and government purchases. b. Consumption, planned investment, unplanned changes in inventory, and exports. c. Consumption, investment, government purchases, and net exports. d. Consumption, investment, exports and imports. 27. The aggregate demand (AD) curve slopes downward indicating that a. an increase in the general price level will reduce the aggregate quantity of goods and services demanded. b. an increase in the general price level will increase the aggregate...
9.) Ceteris panbus, which of the following would not cause a change in the demand for mopeds? (A) A decrease in consumer incomes (B) A decrease in the price of mopeds (C) An increase in the price of bicycles (D) An increase in people's tastes and preferences for mopeds 10.) "Rising oil prices have caused a sharp decrease in the demand for oil." Speaking precisely, and using terms as they are defined by economists, choose the statement that best describes...
(1)
If the world price is above the domestic equilibrium price, the
domestic country is likely to ____________________ the good.
(2)
The difference between what an economy sells to and buys from
foreigners is _________________.
(3)
The idea that exchange rates and prices adjust to equalize the
cost of living across international boundaries is called
__________________________.
(4)
In the graph below, when the world price is $3, how many units
are...
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