Problem 6: Compile the data on budget deficit (as % of GDP), Domestic Financing of deficit (as % of GDP), Trade deficit (as % of GDP) and inflation rate since 2006 FY 2020 and plot them in a single diagram. Do you see any tendency of twin deficit? Do you find any relationship between budget deficit and inflation?

Problem 6: Compile the data on budget deficit (as % of GDP), Domestic Financing of deficit (as % of GDP), Trade deficit (as % of GDP) and inflation rate since 2006 FY 2020 and plot them in a single diagram. Do you see any tendency of twin deficit? Do you find any relationship between budget deficit and inflation?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Not Chat GPT answer will dislike. Hand written not allowed.
3. Budget balances and the national debt The following table lists federal expenditures, revenues, and GDP for the U.S. economy during several years. All numbers are in billions of dollars. Revenues Year (Billions of dollars) 1929 3.9 1948 1967 1986 2005 FEDERAL EXPENDITURES AND RE VENUES (Percent of GDP) 25 20 15 10 41.6 Plot the data for revenues and expenditures as a percentage of GDP on the following graph, rounded to the nearest percent. Use the orange points (square symbol) for expenditures and the green points (triangle symbol) for revenues. Line segments will automatically connect the points. 1929 148.8 769.2 2,153.9 Expenditures GDP (Billions of dollars) (Billions of dollars) 3.1 103.6 1948 29.8 157.5 990.4 2,472.2 1987 YEAR 1986 269.2 2005 832.6 4,462.8 12,421.9 Expenditures Δ Revenues ?
Do number 4
How will you identify budget deficits?
The effects of a budget deficit can be offset by: a. External financing b. Crowding out c. A structural deficit d. All of the above Crowding out occurs when: a. Business investment increases due to lower interest rates b. There is an increase in business borrowing c. An increase in federal borrowing reduces private borrowing d. There is an increase in the nations’ savings If the government wanted to reduce inflation in the economy, it could: a. Increase income transfers b. Increase government spending c. Cut taxes d. Increase taxes
c) How worrying is the increases in government deficits and debt? Answer these questions in detail and While answering these questions please write academic references in havard referencing style and site them in text please.
Consider the list of situations below faced by an imaginary country that is suffering an economic crisis. Classify each situation as either a result of discretionary fiscal policy or an automatic stabilizer in the economy. 1. Higher government spending in unemployment benefits due to a rise in the number of unemployed people II. A decrease in tax collection due to a decrease in business profits III. Higher public spending due to the introduction of a new emergency credit line for businesses, subsidized by the government IV. Smaller tax revenue resulting from an increase in the amount of households that fall under the poverty line V. Smaller tax revenue due to the approval of a bill that provides tax cuts for small businesses Group of answer choices A. Situations III and V are discretionary fiscal policy, and I, II and IV are automatic stabilizers B. All the situations above are automatic stabilizers C. All the situations above are automatic stabilizers, except for V D. Situations I and…
Explain how a budget deficit arises and what actions governments must take in this circumstance and how does the budget deficit relates to the national debt, use examples, please!
The current market rate of interest is 10 percent. At that rate of interest, businesses borrow $300 billion per year for investment and consumers borrow $50 billion per year to finance purchases. The government is currently borrowing $150 billion per year to cover its budget deficit. a. Derive the market demand for loanable funds, and show how investors and consumers will be affected if the budget deficit increases to $250 billion per year. b. Assuming taxpayers do not anticipate an increase in the future market rate of interest due to the increase in budget deficit, show the impact of the increase in the budget deficit on the market for loanable funds. c. How would your conclusion differ if taxpayers fully anticipate future tax increases to offset the increase in the budget deficit? d. Do you think the Ricardian Equivalence is realistic?
1. In what ways do you think the debt of your country influences the life of ordinary citizens? 2. Suggest three effective ways to relieve your country of it's debts.
1. During the late 1980s and early 1990s, most of the budget deficits were accounted for by a. the decline of foreign investment in the United States. b. the downturn in the economy. c. deliberate fiscal policy changes. d. All of the above are correct. 2.Debt is to deficit as a. money is to income. b. rent is to dividend. c. flow is to stock. d. property is to wealth. 3. A chart of the ratio of national debt to GDP from 1915 to 2014 would show a. significant decreases from 2003 to 2010. b. significant increases from 1983 to 1994. c. sharp increases from 1945 to 1975. d. a continuous decline. 4. A chart of the ratio of national debt to GDP from 1915 to 2014 would show a. significant increases during World Wars I and II. b. significant increases from 1945 to 1975. c. significant increases from 1995 to 2003. d. a larger value in 1975 compared to 1945. 5. In 2009, the…
Read the following extract and answer the question. Twin deficits key concern for next PH president The next CEO of the Philippines will have to grapple with “twin deficits” that may return this year, as the government spends more to rebuild the economy and the demand for foreign exchange expands with the resumption of investment spending coming out of a prolonged pandemic. This is according to JP Morgan economist Nur Raisah Rasid, who sees a return to twin deficits—referring to a simultaneous deterioration in the government’s budget position and widening of the country’s current account deficit as foreign exchange transactions with the rest of the world increase. Which of the following macroeconomic objective is measured by the variable(s) discussed in the above extract? a) Price stability b) Redistribution of income c) Full employment d) Balance of payments stability Solve within one hour for upvote