Because Social Security payments are indexed, Congress: Multiple Choice can let their nominal value decrease. can easily allocate social security money to other parts of the budget. has to vote on the amount of increase in payments every year. no longer needs to vote to maintain their real value.

Q: Describe in one sentence what Ricardian equivalence implies for the government budget and the…

A: Ricardian equivalence is an economic theory proposing a link between government deficits and private…

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A: This concept can be defined as a tool that helps in measuring the total amount of production of…

Q: True or False Assume a closed economy in which C = 60 + 0.5(Y - T), G = 40, I = 40 T = 0, where C…

A: Y = C+I+G Y = 60+0.5(Y)+40+40 Y = 140+0.5Y 0.5Y = 140 Y = 280   Now, Private Sector Saving = S = Y -…

Q: In trade negotiations with the Japanese over the large US trade deficit with Japan, the US…

A: Exports and Imports are the two main elements of Balance of Trade (BOT). The Balance of trade…

Q: If consumption is $11 trillion, investment is $2 trillion, government purchases are $3 trillion,…

A: Gross domestic product (GDP) is a measure of the economic output of a country. It is the total value…

Q: In most developing countries, an effective fiscal policy is: easier to conduct than in developed…

A: Economics: Economics is a scientific branch of study concentrated on analyzing how economies make…

Q: eping the balance of payments in equlibrium :  State why governments / decision makers try to…

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A: A fiscal deficit occurs when a government's total spending exceeds its total revenue in a given…

Q: There is a euro zone recession. What part of US GDP is MOST impacted by a Eurozone recession?

A: The following problem has been answered as follows:

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A: When the economy is t the equilibrium, the injections are equal to the leakages. Injections are the…

Q: Nations with very high rates of inflation (over 100 % per year) typically     a) are more advanced…

A: Inflation is the increase in price and decline in the purchasing value of money.

Q: One Chinese Yuan trades for approximately .11 Euros. Your recent trip took you from France to…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: a) In the open economy ISLM model, describe the effects of fiscal and monetary ex- pansions with…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The table below shows the effect of changes in various economic variables in the countries of…

A: A price index is a metric that gauges the overall alteration in prices over time for a specific…

Q: An open economy interacts with the rest of the world through its involvement in world markets for…

A: Achieving Balance of Payments Equilibrium The balance of payments accounts note all transactions…

Q: Consider the following closed economy (i.e., one that does not trade with the rest of the world).…

A: Here, the information about real GDP and the components of aggregate demand is given for a closed…

Q: debt by $24.5 trillion over the next 20 years. This will be financed through future taxes.…

A: The correct answer is given in the second step.

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A: Central bank is the apex Bank of the nation. The major aim of the central bank is to bring stability…

Q: Conventional ways to reduce the deficit and the related problems

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…

Q: Identify what trade and financial impact Brexit will have on the British?

A: Brexit is an abbreviation that denotes the exit of the British from the European Union.

Q: In economics, Gresham’s law refers to a fiscal principle regarding government spending programs to…

A: please find the answer below.

Q: In the country of Mordor, the government spent $200 million on swords. Prices do not rise at all,…

A: In this problem, we are tasked with determining what percentage of every dollar people in the…

Q: Government budget deficit constitutes 5 % of GDP, current account surplus is 100, disposable ncome…

A: Given information Budget deficit=5% of GDP Current account surplus=100 Disposable income=2000

Q: If a country's currency's external value is tied or pegged to the currency values of the country's…

A: A foreign exchange market is one that allow people to make an exchange of currency of different…

Q: The two ways in which deficit spending can impose a burden on future generations are: a)by requiring…

A: Deficit spending alludes to a fiscal policy wherein a government deliberately spends more money than…

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A: The subject at discussion is fiscal policy, which refers to government acts affecting expenditure…

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A: The trade deficit is caused when the country imports more goods and services compared to the…

Q: Investment equals $2,120 million in your country. Private saving is $2,750 million and the…

A: Trade balance: - trade balance is the difference between a country’s exports and imports in terms of…