General Accounting question Suppose a government has no debt and a balancedbudget. Suddenly, it decides to spend $10 billion whileraising only $8 billion worth of taxes. What will be thegovernment's deficit?

The government's deficit will be the difference between its spending and its tax revenue. In this…

Answered: Suppose a government has no debt and a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Suppose the economy is in a recession and the government is running a budget surplus. This implies the government is running a __________ and decreasing its __________. structural surplus; net debt structural deficit; net debt structural deficit; net asset structural surplus; net asset balanced budget; net asset
1) Fiscal policy refers to a) making changes in private expenditures as a result of changes in government spending. b) making changes in the quantity of money to achieve particular economic goals. c) efforts to balance a government's budget. d) making changes to government budgets to achieve particular economic goals. 2) The economy suffers a positive supply shock. As a result, in the short run Real GDP will and the price level will a) fall; fall b) fall; rise c) fall; remain constant d) rise; fall 3) A change in Real GDP in the short run can be brought about by a change in a) labor productivity. b) wealth. c) All of the options available d) the exchange rate. 4) An expansionary fiscal policy will a) never result in a budget surplus. b) always result in a budget deficit. c) sometimes result in a budget deficit. d) always result in a budget surplus.
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.
No chatgpt answer pls In which of the following situations does the government NOT need to balance its budget? a. if nominal GDP grows faster than the growth in debt b. if nominal GDP grows slower than the growth in debt c. if inflation is zero d. if inflation is higher than the growth in debt
Suppose the Federal Reserve increased deposits by $100 billion, but the reserve requirementon all deposits was 100%. What impact would the change in deposits have on the moneysupply? Group of answer choices The money supply would increase by $100 billion. The money supply would increase by an infinite amount. The money supply would decrease by $100 billion. The money supply would decrease by an infinite amount. The money supply would not change.
Solve the problem
8) A balanced budget occurs when a) transfer payments equal tax revenues. b) a budget deficit during one year is matched by a budget surplus in the next year. c) government expenditures equal tax revenues. d) the national debt is reduced to zero dollars. 9) The interest rate effect is one of the a) shifters of an AD curve. b.) reasons why a short-run aggregate supply curve can be derived. c) reasons why an AD curve is downward-sloping. d) shifters of a short-run aggregate supply curve. 10) The real balance effect explains the change in a) the output producers produce as they attempt to balance their production in response to changes in consumers' demand. b) the value of physical assets (e.g., houses) that results from a change in the price level. c) the real wealth that results from a change in the amount of income earned. d) the real wealth that results from a change in the price level.
If the Fed sold $6 billion in government securities and the public deposited $3billion in their bank account, by how much would the monetary base change?
There are claims that the central bank caused the recession, and due to them, production has dropped below the optimum level, and inflation has gone up. What would you say to defend the central bank? Explain in detail.
None
The government will be decreasingincome taxes. To an entity producingluxury bags, it would: A. Expect lower economic growth and may plan to produce less of these bags.B. Expect higher economic growth and may plan to produce more of these bags.C. Expect lower economic growth and may plan to produce more of these bags.D. Expect higher economic growth and may plan to produce less of these bags.
Please help me. I need fast solution.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

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?