If a government experiences an increase in its budget surplus, which of the following possible outcomes...
If a government experiences an increase in its budget surplus, which of the following possible outcomes will likely result?
A. investment falls while everything else holds constant
B. exports decrease while imports and all other variables are held constant
C. imports increase while exports and all other variables are held constant
D. private savings decrease while everything else holds constant
Homework Answers
A budget is in surplus when government receipts is more than government spending.Budget surplus reduces aggregate demand which decreases exports without changing imports.
Answer-B
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If a government experiences an increase in its budget surplus,
which of the following possible outcomes...
please answer all The components of GDP are: Select one: O a. Consumption, government spending, net...
please answer all
The components of GDP are: Select one: O a. Consumption, government spending, net exports, and investment. O b. Exports, imports, investment, and disposable income. O c. Consumption, exports, imports, and disposable income. O d. Consumption, inventory, government spending, and disposable income. Question 19 Not yet answered Points out of 1.00 P Flag question The crowding out effect refers to a decrease in: Select one: O a. Consumption or investment as a result of an increase in government...
QUESTION 36 Which of the following is most likely to increase U.S. exports? O a. The...
QUESTION 36 Which of the following is most likely to increase U.S. exports? O a. The government reduces the size of the budget surplus. Ob. The government gives subsidies to U.S. firms that export goods or services. OC. Taxes on domestic saving rise. Od. The United States unilaterally reduces its restrictions on foreign imports.
QUESTION 14 Which of the following statements is captured by the accounting identity, S+ (T-G)+CA? A...
QUESTION 14 Which of the following statements is captured by the accounting identity, S+ (T-G)+CA? A country with a low savings rate and a government budget deficit needs investment from other countries to supplement its domestic investment funds. A country with a high savings rate and a government surplus has additional funds available to invest in other countries A country that would like to increase its government budget deficit and domestic investment or increase private savings. reduce its current account...
Which of the following is correct regarding the role of government in the aggregate expenditure model?...
Which of the following is correct regarding the role of government in the aggregate expenditure model? A. Net tax revenues enter the AE function indirectly through its effect on disposable income.Net tax revenues enter the AE function indirectly through its effect on disposable income. B. Transfer payments directly affect aggregate expenditures.Transfer payments directly affect aggregate expenditures. C. Private saving is always smaller than budget balance.Private saving is always smaller than budget balance. D. When government has a budget surplus comma...
Complete the sentences. Assume that the world consists only of the United States and Germany and...
Complete the sentences. Assume that the world consists only of the United States and Germany and that trade between them is balanced, so that neither runs a trade deficit or surplus. If the euro falls in value relative to the U.S. dollar, with all else remaining unchanged, what will occur? U.S. exports increase to Germany will and decrease imports from Germany will increase deficit less than These changes in trade will decrease Сашка Answer Bank ng ex not change outflow...
Among the most important problems of implementing fiscal policy include all except which of the following?...
Among the most important problems of implementing fiscal policy include all except which of the following? Correctly timing the desired fiscal stimulus, given the inevitable lags and forecasting errors Determining how large a stimulus to apply Assessing when policy actions should be reversed Determining how long a time lag to apply If the central bank does not use accommodating monetary policy, a fiscal stimulus is likely to increase interest rates, which in turn, will cause planned investment to decrease. What...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to the right. tne long-run aggregate supply curve shifts to the left. C) the 20) When aggregate demand curve shifts to the left. the short-run aggregate supply curve shifts to the left. t spending without an accompanying increase 21) An increase in govenment spending n taxes demand A) does not increase aggregate B) would effectively eliminate an inflationary gap. Q mquires additional govemment borrowing spending...
A5-10. Suppose the following aggregate expenditure model describes an economy: C = 100 + (5/6)Yd T...
A5-10. Suppose the following aggregate expenditure model describes an economy: C = 100 + (5/6)Yd T = (1/5)Y 1 = 200 G = 400 X = 300 IM = (1/3)Y where C is consumption, Yd is disposable income, T is taxes, Y is national income, I is investment, G is government spending, X is exports, and IM is imports. (a) Derive a numerical expression for aggregate expenditure (AE) as a function of Y. Calculate the equilibrium level of national income....
An individual income tax is a tax on: Select the correct answer below: o the profits...
An individual income tax is a tax on: Select the correct answer below: o the profits of a corporation O an individual's annual income O an individual's purchases at major retailers o the wages an individual receives from an employer When the budget deficit rises... Select the correct answer below: O domestic private investment falls O government spending falls O the trade deficit falls O private savings fall Which of the following will lead to expansionary fiscal policy? Select all...
Suppose the following are national accounts data for a given year for a fictitious country: $B AUD Consumption of fixed...
Suppose the following are national accounts data for a given year for a fictitious country: $B AUD Consumption of fixed capital ………………………………………………. 320 Gross private fixed capital formation……………………………………….. 785 Government consumption expenditure………………………………………. 585 Government investment expenditure………………………………………… 210 Imports of goods and services………………………………………………...565 Exports of goods and services………………………………………………...690 Household consumption expenditure………………………………………..3115 Net property and other income paid overseas………………………………….34 Returns to labour…………………………………………………………….2651 Firm profits………………………………………………………………….1687 Other factor rentals……………………………………………………………482 _____________________________________________________________________ (j) Suppose that tax revenues are $17 billion for the fiscal year, then what...
please answer all
The components of GDP are: Select one: O a. Consumption, government spending, net exports, and investment. O b. Exports, imports, investment, and disposable income. O c. Consumption, exports, imports, and disposable income. O d. Consumption, inventory, government spending, and disposable income. Question 19 Not yet answered Points out of 1.00 P Flag question The crowding out effect refers to a decrease in: Select one: O a. Consumption or investment as a result of an increase in government...
QUESTION 36 Which of the following is most likely to increase U.S. exports? O a. The government reduces the size of the budget surplus. Ob. The government gives subsidies to U.S. firms that export goods or services. OC. Taxes on domestic saving rise. Od. The United States unilaterally reduces its restrictions on foreign imports.
QUESTION 14 Which of the following statements is captured by the accounting identity, S+ (T-G)+CA? A country with a low savings rate and a government budget deficit needs investment from other countries to supplement its domestic investment funds. A country with a high savings rate and a government surplus has additional funds available to invest in other countries A country that would like to increase its government budget deficit and domestic investment or increase private savings. reduce its current account...
Complete the sentences. Assume that the world consists only of the United States and Germany and that trade between them is balanced, so that neither runs a trade deficit or surplus. If the euro falls in value relative to the U.S. dollar, with all else remaining unchanged, what will occur? U.S. exports increase to Germany will and decrease imports from Germany will increase deficit less than These changes in trade will decrease Сашка Answer Bank ng ex not change outflow...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to the right. tne long-run aggregate supply curve shifts to the left. C) the 20) When aggregate demand curve shifts to the left. the short-run aggregate supply curve shifts to the left. t spending without an accompanying increase 21) An increase in govenment spending n taxes demand A) does not increase aggregate B) would effectively eliminate an inflationary gap. Q mquires additional govemment borrowing spending...
A5-10. Suppose the following aggregate expenditure model describes an economy: C = 100 + (5/6)Yd T = (1/5)Y 1 = 200 G = 400 X = 300 IM = (1/3)Y where C is consumption, Yd is disposable income, T is taxes, Y is national income, I is investment, G is government spending, X is exports, and IM is imports. (a) Derive a numerical expression for aggregate expenditure (AE) as a function of Y. Calculate the equilibrium level of national income....
An individual income tax is a tax on: Select the correct answer below: o the profits of a corporation O an individual's annual income O an individual's purchases at major retailers o the wages an individual receives from an employer When the budget deficit rises... Select the correct answer below: O domestic private investment falls O government spending falls O the trade deficit falls O private savings fall Which of the following will lead to expansionary fiscal policy? Select all...
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