The debt-to-GDP ratio will always decrease if A) the economy enters a boom B) the government implements sharp spending cuts C) government tax revenues as a share of GDP do not decrease  D) the primary deficit grows at the same rate as GDP E) none of these

Q: How can a country reduce its public debt? A) Increasing government spending B) Reducing budget…

A: The total amount of money a government owes both its citizens and outside creditors is referred to…

Q: When a government repays its public debt, either through budget surpluses or refinancing, this…

A: Public debt is the loan borrowed by government either from public, banks, financial institutions,…

Q: The direct cost of debt depends on: fiscal policy. the amount of the deficit. the interest rate. the…

A: This can be defined as a concept that shows the cost incurred in the production process of a…

Q: Any deficit that a government might run must be financed somehow. Which of the following is a…

A: In an economy, government might run budget deficit due to spending more than its revenue from…

Q: Contrast government debt with budget deficit or surplus

A: Budget deficit is the government expenditure dominating the government revenue in budget for a given…

Q: Match the terms with their definition. Budget surplus Budget deficit Balanced budget Government…

A: Surplus: The term surplus refers to the amount that has been left after meeting the requirement is…

Q: As per the government budget, the interest payments are estimated at $10,000 which is 40% of the…

A: The information being given is:- Interest payment = 10,000 This is the 40% value of primary deficit…

Q: 3. Effects of a government budget deficit Consider a hypothetical open economy. The following table…

A: Real Interest Rate National Saving (Supply) Domestic Investment (Demand) 7 60 30 6 55 40 5 50…

Q: A government finances all of its debt through 1-year treasury bonds. This government is able to…

A: The debt-to-GDP ratio is the percentage of a country's debt to its GDP. It is used to measure a…

Q: Do you believe the traditional or the Ricardian view of government debt? Justify your response?

A: The traditional view of government debt assumes that when the government lowers taxes and runs a…

Q: he Effects of Fiscal Deficits on an Economy.

A: Fiscal deficits are unfavourable balances that develop whenever a government spends more within a…

Q: Which of the following will cause a reduction in the debt-to-GDP ratio? A) an increase in the real…

A: In an economy, the debt-to-GDP ratio refers to the measurement of an economy's total debt or…

Q: evaluate the importance of spending reviews in the municipal budgeting process

A: Budgeting is the practise of calculating income and expenses in order to create a budget. The first…

Q: When current income of the Government is less than its current expenditure, it is known as: a)…

A: Revenue is the amount that is received by the producer or the seller after the sales of the goods…

Q: compared to federal spending state and local spending is A) almost twice as large B) about the…

A: Federal spending is considered the government spending on all the sectors and areas of the society…

Q: The Federal Reserve and the federal government agencies hold more than half the public debt.  TRUE…

A: The abovementioned statement is FALSE.

Q: What is the relationship between budget deficit and debt ratio to Gross Domestic Product (GDP)

A: A budget deficit shown when expenses exceed revenue and indicate financial condition of a country.…

Q: Deficit may be defined as? Public Debt Intergovernmental Debt Debt created solely because the…

A: A budget deficit happens when a government, company, or a person has spending that is greater than…

Q: Short answer question (1) Define fiscal deficit

A: # During a perticular fiscal year if the government's expenditure goes up in comparison to the total…

Q: A government's debt is reduced when it   Group of answer choices runs a surplus. runs a deficit.…

A: Macroeconomics refers to the branch of economics that studies the economy as a whole. Macroeconomics…

Q: explain the impact of balanced budget on national debt

A: Primarily. lets clear on two basic concepts that will be used in the question under consideration:…

Q: The use of long-term debt is a traditional part of the fiscal policy of state and local governments.…

A: Fiscal policy describes the use of government budget tools to stimulate or slow down economic…

Q: The government debt is None of these answers is correct. the total accumulation of deficits in the…

A: Money that is borrowed for a certain period.

Q: One of the major differences between the liberal and conservative political ideologies in the United…

A: When the government employs measures to change the market condition then those measures are…

Q: Analyse the various policy measures that a government might have to undertake to deal with and…

A: A fiscal deficit occurs when government spending exceeds government receipts. An uncontrolled fiscal…

Q: Which of the following statements is true? State and local governments must balance their budgets…

A: Macroeconomic analyses the total working, composition, and dynamics of an economy. To comprehend and…

Q: ​An excess of government revenues over expenditures results in a budget deficit  True  False

A: Government revenue is the revenue generated from the tax.  Government revenue is usually the tax…