only correct answer or dowvote Which of the following statements about budget deficits and surpluses is true? Select the correct answer below: If the budget deficit falls, private savings also fall. If the budget surplus increases, the trade deficit increases. If the budget deficit falls, domestic private savings fall. If the budget surplus rises, the trade surplus falls.

only correct answer or dowvote Which of the following statements about budget deficits and surpluses is true? Select the correct answer below: If the budget deficit falls, private savings also fall. If the budget surplus increases, the trade deficit increases. If the budget deficit falls, domestic private savings fall. If the budget surplus rises, the trade surplus falls.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which statement best explains why budget deficits may bring on a recession? a) Large deficits increase interest rates, attracting foreign investors. b) Persistent deficits lead to economic problems that scare away foreign investors. c) Spiraling national debt depresses private saving, reducing the amount of capital that can be invested. d) Deficit spending leads to a reduction in aggregate demand and a decrease in output.
In 2010, the country of Lykesville had a balance budget, no debt, and its GDP was $31500. In 2011, it spent $11500 and had $100000 in tax revenue, and its GDP in creased to $37500. In 2012, it spent $13500 and had $13000 in tax revenue, and its GDP further increased to $37500. Did Lykesville runa budget deficit or budget surplus in 2012? What was Lykesville's Debt-GDP ration, expressed as a % at the end of 2012?
The following table shows the approximate value of exports and imports for the United States from 1983 through 1987. Complete the table by calculating the surplus or deficit both in absolute (dollar) terms and as a percentage of GDP. If necessary, round your answers to the nearest hundredth. Year GDP Exports Imports Exports – Imports (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) (Percentage of GDP) 1983 3,535.0 277.0 328.6 1984 3,931.0 302.4 405.1 1985 4,218.0 302.0 417.2 1986 4,460.0 320.3 452.9 1987 4,736.0 363.8 508.7 Source: “Income, Expenditures, Poverty, & Wealth: Gross Domestic Product (GDP),” United States Census Bureau, United States Department of Commerce, last modified September 2011, accessed June 10, 2013, https://www.census.gov/library/publications/2011/compendia/statab/131ed/income-expenditures-poverty-wealth.html. Between 1983 and…
"If I am elected I will reduce the deficit" -every politician in history Which of the following best describes the statement above and the difference between the debt vs deficit? Federal government spending will be O more than tax revenue and debt will decrease. Federal government spending will be less than tax revenue and debt will increase. Federal government spending will continue to be greater than tax revenue, and debt will increase. Federal government spending will be less than tax revenue and debt will decrease.
Answer the following questions: As you know, the US government has been running budget deficits for several years now. In your opinion, and based on economic reasoning, what will happen to the US economy if the US Federal Government continues to run annual budget deficits for the next decade. Will the economy survive that? Will the economy grow? Will it grow as fast as it could? Will the deficits cause the economy to grow faster? Will it grow at all? These are some of the questions you might address in your primary post.
Saved The size of the national debt increases when the federal government runs a deficit. True or False True False
In which of the following cases does the size of the government’s debt and deficit indicate potential problems for the economy? Explain your answer. a) The government’s debt is relatively low, but the government is running a large budget deficit as it builds a high-speed rail system to connect the major cities of the nation. b) The government’s debt is relatively high due to a recently ended deficit-financed war, but the government is now running only a small budget deficit. c) The government’s debt is relatively low, but the government is running a budget deficit to finance the interest payments on the debt. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Assume a government decides to implement a new tax policy, resulting in a smaller budget deficit. Based on the national savings and investment identity, this would result in some combination of private investment, private savings, and/or trade deficit. A-Higher; lower; higher B-Higher; lower; lower C-Lower; higher; higher D-Lower; higher; lower
Summarize the effects of a budget deficit by filling in the following table.Real Interest RateReal Exchange RateTrade BalanceEffects of a Budget Deficit
20 Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries. Total spending for the federal government of Lilliput for the last fiscal year was $24.19 billion. The country collected $22.9 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance? Enter your answer to two decimal places. budget balance: $ In the last fiscal year, Lilliput was running a budget surplus a budget deficit a balanced budget billion
Suppose that the government of Smallville spends $2 trillion in 2020 and receives tax revenues of $1.5 trillion in that same year. Which of the following is TRUE? Smallville has a trade surplus of $0.5 trillion. Smallville has a trade deficit of $0.5 trillion. Smallville has a budget surplus of $0.5 trillion. Smallville has a budget deficit of $0.5 trillion. t
First blank: Surplus/Deficit Second blank: Grew/Shrank/Remained the same Third blank: Grew/Shrank/Remained the same Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.