Suppose a government has no debt and a balanced budget. Suddenly, it decides to spend $10 billion while raising only $8 billion worth of taxes. What will be the government's deficit?
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- Need help with this accounting questionsAll other things being equal, which of the following would cause interest rates to rise? a. The economy slides into a recession. b. The federal government's budget deficit declines. c. The rate of inflation decreases. d. The Federal Reserve contracts the money supply.If the actual budget deficit solve this general accounting question
- What are the structural deficit and the cyclical deficit?What are structure deficit and the cyclical deficit?What effect would each of the following events likely have on the level of nominalinterest rates?1. Households dramatically increase their savings rate.2. Corporations increase their demand for funds following an increase in investmentopportunities.3. The government runs a larger-than-expected budget deficit.4. There is an increase in expected inflation.
- 1. Suppose that a financial institution has a negative $25 million difference between its assets and liabilities. Is the institution exposed to refinancing risk or reinvestment risk and what will happen to net income if there is a rise in interest rates? 2. Suppose a financial institution has a positive $25 million difference between its assets and liabilities. Is the institution exposed to refinancing risk or reinvestment risk and what will happen to net income if there is a drop in interest rates?If you give me wrong answer this financial accounting question I will give you unhelpful rateI need answer