Question 2 a. As a student of Public Finance, discuss thepolitical and economic implications of governmentborrowing. [10] b. [5] i. What constitutes the debtburden? [10] Question 3 ii. Carefully analyze theefficiency and equity implications of a debt burden forLesotho.

Step-by-Step Analysis of Government Borrowing in Lesotho Step 1: Evaluating the Need for…

Answered: Question 2 a. As a student of Public…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A sovereign debt crisis is most likely to occur for which type of country? a large, rich country a rich country, with little debt a small, rich country which has had small deficits in most years a small, poorer country with a lot of debt
Which of the following statements are TRUE? (a) In a situation of a sovereign debt crisis Keynesian macroeconomic policy is unavailable because the government is practically unable to borrow. (b) Balancing the national government budget each year is sound macroeconomic policy (c) It is possible and preferable to balance the national government budget over the business cycle. (d) The national debt always implies mortgaging our children's future and thus government should seek to retire as much of this debt as possible. (e) The part of the national debt that is owed to other parts of the national government should not be counted as a problem since it involves the government owing money to itself.
One objection to deficit spending is that it increases the demand for loanable funds thereby putting upward pressure on interest rates that crowds out private investment spending thereby lowering future U.S. growth. (1) What is the general level of interest rates in 2020?
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Indepth recommendations on how debt-management may be improved in Barbados.
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This is not a writing assignment, this is a multiple-choice question Which of the below statements is INCORRECT regarding a budget deficit? Group of answer choices Heavy government spending and persistent federal budget deficits during both good times and recessions result in a strong economy and a high standard of living for its people. Raising taxes or cutting a budget deficit during a recession will almost certainly make the recession worse. As an economy slips into recession, incomes and tax revenue fall, while unemployment and unemployment benefits rise, and this results in a deficit budget. A budget deficit happens when the government spends more than it collects in tax revenue.
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Question 2 a. As a student of Public Finance, discuss the political and economic implications of government borrowing. [10] b. [5] i. What constitutes the debt burden? [10] Question 3 ii. Carefully analyze the efficiency and equity implications of a debt burden for Lesotho.