crowding out

Q: When the MPC increases: a. the government spending multiplier stays the same b. the government…

A: The marginal propensity to consume refers to that portion of the increased income that was spent by…

Q: Explain how an increase in government spending may decrease private investment (crowding-out…

A: When government raises its expenditure on investment, it leads to a rise in the aggregate demand in…

Q: Fiscal policy is conducted by the government and aims at boosting the economy; which of the…

A: The economies around the world have various entities, which are considered to be decision makers,…

Q: Which of these are examples of automatic stabilizers? A. sales tax revenues and income security B.…

A: The automatic stabilizer is a system in which when the economy is fluctuating or overhears, the…

Q: Assume the economy is at an output level that is above the potential GDP, if a contrary fiscal…

A: Fiscal Policy refers to changes in the government expenditure or tax rates in order to bring the…

Q: Explain, using appropriate diagrams, how a rise in the household saving rate can cause a fall in…

A: GDP is the value of final goods and services produced in the country within a given period of time.

Q: Suppose that when government spending increased by $200, total spending in the economy increased by…

A: Government spending multiplier = Increase in total spending / Increase in government spending = $600…

Q: The use of fiscal policy to end recessions is limited because O The level of taxes is not always…

A: A recession refers to a significant decline in economic activity across an economy, usually…

Q: Suppose that the government decreases its autonomous spending by $100 billion and also decreases its…

A: Gross domestic product is the sum of a country's final goods and services. The increase in GDP…

Q: Which of the following will not undermine the effectiveness of fiscal policy, and prevent it from…

A: Fiscal policy refers to the use of government spending, taxation, and borrowing to influence the…

Q: What is Fiscal policy? Is the answer A? Fiscal policy is when the government could spend more money…

A: Fiscal policy means the government's use of spending and taxation to influence the economy. It…

Q: What are the short-run and long-run implications when it comes to government spending changes versus…

A: Government Spending is defined as the money that is spent by the government or the public sector of…

Q: Suppose the government decide to use fiscal policy to close the output gap. The marginal propensity…

A: here we calculate the change of government spending require to close the GDP output , by using the…

Q: Which of the following would most likely occur if the federal government decreased its spending and…

A: During a period of full employment, the economy is operating at or near its maximum potential…

Q: 1.Which of the following is an example of fiscal policy? Select an answer and submit. For keyboard…

A: Fiscal policy refers to the policy used by the government to stabize the economy.

Q: Suppose that the government decreases its autonomous spending by $100 billion and also decreases its…

A: Gross domestic product is the sum of a country's final goods and services. The increase in GDP…

Q: Which of the following is an example of contractionary fiscal policy? A. Cutting spending B.…

A: Fiscal policies are managed/controlled by the government of the country whereas monetary policies…

Q: Using diagrams can you please show how the rise in the household saving rate can cause a fall in…

A: The IS curve is downwards sloping to the right which indicates to the fact that the rate of…

Q: A federal budget deficit is financed by: a. Printing money b. Selling Treasury bonds c. Raising…

A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…

Q: 8. Given each of the following values for both the spending multiplier and the tax multiplier,…

A: We're given different values for both the spending multiplier (SM) and the tax multiplier (TM), and…

Q: Government consumption expenditures (G) include central, municipal and federal government. a. True…

A: GDP = Household consumption + Government expenditure + Gross investment + net exports where…

Q: What happens to the real GDP if the government increases spending by $50 million and the government…

A: The government multiplier = 1.5 Government spending = $50 million

Q: Suppose the tax multiplier in an economy is -8. If the government wants to lower total spending (TS)…

A: The tax multiplier shows the effect of any change in taxes on the aggregate demand of the economy.…

Q: A number of articles published in the Wall Street Journal in the past year convince Americans to…

A: The articles published in the Wall Street Journal in the past year convince the Americans to save…

Q: a fiscal gap and a generational gap

A: The time bomb caused by social security and Medicare creates both a fiscal as well as a generational…

Q: Answer the next four questions based on the following diagn C+I+G 200 1600 Show all your work Based…

A: Given the data from the above graph we have, Autonomous consumption(a)= 200National income or GDP…

Q: partial data in the table below are for the economy of Arinaka. Planned investment, government…

A: MPC  is marginal propensity to consume,which tells how much of additional income is used on…