ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 12, Problem 3.8P
Sub-part
A
To determine
the way in which the national debt is related to the government’s budget deficit. When the gross national debt is $3 trillion and the government’s budget deficit is $300 billion.
Concept Introduction:A budget is an estimation of revenue and expenses over a specified future period of time. A budget deficit occurs when expenses exceed revenue, and it is an indicator of financial health. To correct a budget deficit, a nation may need to cut back on certain expenditures, increase revenue-generating activities or employ a combination of the two.
Sub-Part
B
To determine
the way in which the national debt is related to the government’s budget deficit. When the gross national debt is $2.5 trillion and the government’s budget deficit is $100 billion.
Concept Introduction:A budget is an estimation of revenue and expenses over a specified future period of time. A budget deficit occurs when expenses exceed revenue, and it is an indicator of financial health. To correct a budget deficit, a nation may need to cut back on certain expenditures, increase revenue-generating activities or employ a combination of the two.
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Answer in step by step with explanation.
Don't use Ai.
Use the figure below to answer the following question. Let I represent Income when healthy, let I represent income when ill. Let E [I] represent expected income for a given
probability (p) of falling ill.
Utility
у в
ULI
income
Is
есте
IM
The actuarially fair & partial contract is represented by Point
X
× OB
A
Y
Suppose that there is a 25% chance Riju is injured and earns $180,000, and a 75% chance she stays healthy and will earn $900,000. Suppose further that her utility function is
the following:
U = (Income) ³.
Riju's utility if she earns $180,000 is _ and her utility if she earns $900,000 is.
X
56.46; 169.38
56.46; 96.55
96.55; 56.46
40.00; 200.00
169.38; 56.46
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