Analyze the impact of the government budget deficit on Malaysia's open economy. Include a three-panel diagram, the market for loanable funds, net capital outflow and the market for foreign currency exchange to demonstrate the effects.

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter17: Federal Deficits, Surpluses, And The National Debt
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(b) Malaysia's fiscal deficit to rise to level seen during global financial crisis
KUALA LUMPUR - Malaysia's fiscal deficit for 2021 should hit a level similar to
that seen during the global financial crisis more than a decade ago, according to
the government's first-ever pre-budget statement.
Released on Tuesday (Aug 31), the country's Independence Day, the pre-budget
statement showed the fiscal deficit reaching between 6.5 per cent and 7 per cent for
2021, higher than the 5.4 per cent initially estimated. The deficit reached 6.7 per
cent during the 2008-2009 global financial crisis.
Malaysia's economy has been battered since a budget projection was first made
late last year, with the country beset by surging Covid-19 infections and repeated
lockdowns for much of the year.
Analyze the impact of the government budget deficit on Malaysia's open
economy. Include a three-panel diagram, the market for loanable funds, net
capital outflow and the market for foreign currency exchange to demonstrate
the effects.
Transcribed Image Text:(b) Malaysia's fiscal deficit to rise to level seen during global financial crisis KUALA LUMPUR - Malaysia's fiscal deficit for 2021 should hit a level similar to that seen during the global financial crisis more than a decade ago, according to the government's first-ever pre-budget statement. Released on Tuesday (Aug 31), the country's Independence Day, the pre-budget statement showed the fiscal deficit reaching between 6.5 per cent and 7 per cent for 2021, higher than the 5.4 per cent initially estimated. The deficit reached 6.7 per cent during the 2008-2009 global financial crisis. Malaysia's economy has been battered since a budget projection was first made late last year, with the country beset by surging Covid-19 infections and repeated lockdowns for much of the year. Analyze the impact of the government budget deficit on Malaysia's open economy. Include a three-panel diagram, the market for loanable funds, net capital outflow and the market for foreign currency exchange to demonstrate the effects.
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