In your macroeconomic lectures you are often told that exchange rates and interest rates are important for macroeconomic decision-making. a. How does an increase in Japan’s government budget deficit affect each of the following?

Q: Using DD-AA-XX curves, compare the effect on the current account of temporary and permanent…

A: The AA and DD model is described using a diagram that consists of two curves as shown below.…

Q: Through what channels might QE affect real GDP

A: Quantitative easing refers to a form of an unconventional monetary policy wherein the central bank…

Q: Brexit and Covid-19 restrictions may result in a recession. How can the UK government and Bank of…

A: When recession occur in the economy because of Covid-19 restrictions then UK government and Bank of…

Q: Assuming there is no trade, if the Marginal Propensity to Save is 0.20 and the government increases…

A: So there is effect of multiplier will occur.

Q: (1) Consumption function: C = 100 + .8Y, (2) Planned investment: I = 38 (3) Government spending: G =…

A: C=100+0.8Ydi=38g=75EX=25IM=0.5YdT=40AE=C+I+G+EX-IMEquilibrium Income:…

Q: Explain why a large open economy generally does not face a 'trilemma, Is there any case where a…

A: Trilemma: It refers to a theory of economics, under which the country needs to select from the three…

Q: Why is the statstic for fiscal deficits are so closely monitired in small fixed exchange rate…

A: In fixed(FEX) exchange-rate system, the exchange-rate(EXR) is kept constant that is the point where…

Q: If the economy is in equilibrium, and the budget deficit = zero, the trade deficit = $200 and…

A: Saving = Investment + Budget (G-T) + Net exports(X-M)  = 300 + 0 + -200 Savings = 100

Q: Answer the following questions 1.a. Today many Central Banks around the World are thinking of…

A: Note: We will answer the first question as the exact one was not specified. Please resubmit a new…

Q: 10. If net foreign investments are -250, what are the net exports? Can you draw any conclusions…

A: Foreign investment refers to the capital flow from one country to another, this grants the foreign…

Q: government decides to introduce an expenditure-switching measure to reduce a balance of trade…

A: Expenditure switching policy refers to the change the goods that are bought by consumers.  Such…

Q: 7. In October 2012, amid European debt crisis, a newspaper article, describ- ing a meeting between…

A: a) In November 2011, Mr. Draghi took over as president of the ECB. The financial crisis in the…

Q: 4. In your macroeconomic lectures you are often told that exchange rates and interest rates are…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: In the years leading up to the global financial crisis (say, around 2005-06), the large U.S.…

A: (Q)In the years leading up to the global financial crisis (say, around 2005-06), the large U.S.…

Q: Hi, can I please get help with the picture in the attachements its true and false. I’m not so good…

A: The statement “Japan’s economy met its expected growth rate of 2%” is false. Reason: Even though the…

Q: Suppose that the long term interest rate are decreasing since there is an expectation that the…

A: The situation when there arises recession in the economy, the interest rates tend to fall in the…

Q: Under fixed exchange rates, monetary policy should be used to attain external balance and fiscal…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first question for you as per…

Q: 1. The main objective of the macroeconomics to improve the standard of living of people whereas, to…

A: Macroeconomics objective: the goal of macroeconomic approaches is to expand the degree of public…

Q: What is the relationship between India's fiscal policies and its current account?

A: Fiscal policy refers to the policy of the government regarding the public expenditure, taxation and…

Q: un the central bank in a large open economy.Your goal is to stabilize income, and you adjust the…

A: The exchange rate can be expressed as the rate at which one currency can be exchanged for the…

Q: Explain how current account and budget deficit (twin deficit) are related so that changes in one are…

A: The current account is the record of a country's imports (M) and exports of goods and services,…

Q: What is a foreign trade deficit or surplus? How does this affectinterest rates?

A: Foreign trade refers to the trade between two or more countries and trade includes the services of…

Q: .  The government has proposed Rs1,289 billion for the defence budget for the year 2020-21, 5.1%…

A: If the government cut the defence budget keeping the other budget constant, the overall government…

Q: rom the economic Keynesian perspective, what do you think about it? In your post, be sure to…

A: The Keynesian economics marks the dramatic departure from the classical economics. The keynesian…

Q: A few months ago, persons were hoping and praying for a vaccine to be developed to fight against…

A: IS curve: - IS curve shows different combinations of interest rate and the level of GDP where…

Q: a Figure 1 shows the exogenous world interest rate (r*) determines the level of investment (I) and…

A: In Internation trade, factors such as exchange rate and purchasing power parity can have an impact…

Q: The exchange rate between the United States dollar and the Japanese yen is determined in a flexible…

A: A. Expansionary fiscal policy is considered to be most appropriate while an economy is facing a…

Q: What is defation, and what problems does defation pose for the macroecon-omy?

A: The macroeconomic viewpoint focuses at the market overall, concentrating on targets such as life…

Q: What is fiscal deficit and what are two reasons why this economic statistic is so closely monitored…

A: The fiscal deficit is defined as the difference between the government's total revenue and total…

Q: onsider two large open economies - U.S. and Europe. If expansionary fiscal policy is adopted in…

A: Expansionary deals with Keynesian economics which involves a greater part of aggregate demand. An…

Q: At one point Canada’s GDP was $1,800 billion and its exports wer e $542 billion.What was Canada’sex…

A: The trade-to-GDP ratio is a primary indicator of the relative importance for international trade of…

Q: Brazil began indexing various categories of income to O a. slow inflation. O b. keep prices from…

A: Brazil has been facing severe inflation for several years. So measuring real income becomes…