d. Does the total flow ofmoney out of households-the sum of taxes paid,consumer spending, andprivate savings-equal thetotal flow of money intohouseholds?e. How does the governmentfinance its spending? Government purchases ofgoods and services $150Government borrowing $60GovernmentTaxes = $100Government transfers = $10%3DPrivate savings = $200%3DConsumerWages, profit,interest,rent = $800Householdsspending = $510Markets for goodsand servicesFactorFinancialmarketsmarketsGrossWages, profit,interest,rent = $800domesticBorrowing andstock issues byfirms = $110product%3D%3DFirmsInvestmentspending = $110%3DForeign borrowingand sales of stock = $130Exports = $50%3DRest of worldForeign lending andpurchases of stock = $100Imports = $20%3D

The diagram in the question states how the income in an economy flows. The model is known as…

Answered: d. Does the total flow of money out of…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 8SCQ: If inflation rises unexpectedly by 5, would a state government that had recently borrowed money to...

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Suppose an individual decreases their consumption in a year, resulting in more saving for and consumption in the next year. In a taxation system that taxes consumption but not interest income, what will happen to this individual's present value ilfetime tax burden? Ot will Increase. It will decrease. OIt will stay the same.
9. Why do Social Security and Medicare pose problems for the federal government budget? The number of workers who can pay for the retirees is increasing. O Payroll taxes are capped and cannot be raised. O The number of retirees is decreasing. The number of sick people is rising too quickly. O Life expectancy of retirees is increasing. 10. Why do Social Security and Medicare pose problems for the federal government budget? The number of people retiring is increasing. The number of workers who can pay for these retirees is increasing. Life expectancy is decreasing. The number of sick people is rising too quickly. Social insurance taxes cannot legally be raised any further.
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A. Calculate the levels of consumption and savings that occurs when the economy is in equilibrium. B. Computer the government budget deficit in this economy. C. If government spending in banana land increases by $1000 what is the amount of the increase in equilibrium output? D. If taxes in banana land decrease by $1000 what is the new equilibrium output in this economy? E. To keep the government budget balanced, of both government spending and taxes in banana land increase by $1000 what is the change in equilibrium income level?
If inflation rises unexpectedly by 5, would a state government that had recently borrowed money to pay for a new highway benefit or lose?
a greatera smallerdecrease in government spendingdecrease in net taxesincrease in government spendingincrease in net taxesnono change in government spendingno change in net taxes
OF Duppose a tax of $4 imposed. on a tee' equilibrium quont decreosefrom 2006 units to the unit is pou good, and thhe tax ity % the goed to a causes 1808 unts $5000 ond $3400. tax decreoses consemer surples by decruoses paucer, urpeus by the duod weipent loo 0os of tee tax is. a) $50 800 1200 2) $1600 5. e$2200 お 3000
a. In which instance would "crowding out" likely become a concern? OA balanced budget law prevents the government from taking fiscal action during a recession. O Prior-year budget surpluses allow the government to use saved funds to reduce taxes. O In order to increase spending on infrastructure, the federal government decides to borrow funds. b. One result of "crowding out," due to fiscal action, is difficulty saving income for future purchases. O making economic investments. O purchasing stocks and other financial investments.
3. Which of the following is an example of conversion , the misappropriation of fiduciary monies?
Refer to the figure below. $400 SIVT SNOT 200 0 -200 -400 -600 -800 -1000 -1200 -1400 -1600 -1800 -2000 -2200 -2400 -2600 -2800 -3000 $1, -3200 Budget surpluses Budget deficits -3400 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2015 2018 2020 years Since 1994, in how many years has the federal budget had a surplus? Instructions: Enter your response as a whole number. ▬▬ ☐ P Q Search YEAR DIL
QUESTION 4o If you had a budget surplus, which of the following choices would most likely increase that surplus? O a. Change jobs b. Work fewer hours c. Save and invest d. Borrow more O e. Increase spending
4. Which two ministries use up more of the provincial budget than all the others combined?

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d. Does the total flow of money out of households- the sum of taxes paid, consumer spending, and private savings-equal the total flow of money into households? e. How does the government finance its spending?