Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 5E
(a)
To determine
The growth rate of debt when there is a primary deficit.
(b)
To determine
The growth rate of debt when government keeps total budget balances.
(c)
To determine
Impact on debt-
(d)
To determine
Check whether the situation in part (c) is sustainable or not.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
I am having issue understanding how the chart is filled out and the answer are being created.
everything is in the image.
check if my answers are right for the questions and draw the graphs for me please
Knowledge Booster
Similar questions
- check my answers and draw the graph for me.arrow_forwardThe first question, the drop down options are: the US, Canada, and Mexico The second question, the drop down options are: the US, Canada, and Mexico The last two questions are explained in the photo.arrow_forwardcheck my answers, fix them if they are wrong. everything is in the picture. the drop down menus are either kansas or Illinois, except the last one which is yes or no.arrow_forward
- everything is in the imagearrow_forwardeverything is in the image!arrow_forwardRespond to isaiah Great day everyone and welcome to week 6! Every time we start to have fun, the government ruins it! The success of your business due to the strong economy explains why my spouse feels excited. The increase in interest rates may lead to a decline in new home demand. When mortgage rates rise they lead to higher costs which can discourage potential buyers and reduce demand in the housing market. The government increases interest rates as a measure to suppress inflation and stop the economy from growing too fast. Business expansion during this period presents significant risks. Before making significant investments it would be prudent to monitor how the market responds to the rate increase. Business expansion during a decline in demand for new homes could create financial difficulties.arrow_forward
- Respond to Luis Rodriguez I recommend Mrs. Ibrahim's proposal to lower interest rates as the more effective approach for fostering economic growth in Sudan. Sustainable Growth - Lowering interest rates encourages investment in productive capacity, which can lead to long-term economic growth rather than a temporary boost from cash transfers. Job Creation - This approach can create more stable employment opportunities by promoting business expansion through lower borrowing costs. Addressing Structural Issues - Lower interest rates can help address underlying structural issues in the economy, such as low production levels, by incentivizing businesses to invest in technology and infrastructure. Inflation Control - While there is a risk of inflation if appropriately managed, focusing on productive investments can help mitigate this risk compared to the potential inflationary effects of direct cash transfers. In conclusion, while both proposals have merit, Mrs. Ibrahim's approach of…arrow_forwardConsider the competitive market for rhodium. Assume that no matter how many firms operate in the industry, every firm is identical and faces the same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph. 100 90 80 70 COSTS (Dollars per pound) 8 50 40 ຊ 20 10, 10 10 + MC ATC AVC Π 0 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of pounds) (?)arrow_forward3. Uncle Mateo loves shoes and high unemployment. Uncle Mateo owns a small shoe factory in Argentina. His business is doing fairly well, especially because prices in Argentina have been falling, including the cost of labor too, since August of 2024. The date is September 1, 2024, and uncle Mateo texted you the following message in an effort to seek your advice about a new policy the government there is intending to implement to deal with high unemployment rates that started to creep up in early 2024: "Hola (hello) dear niece, As you know, prices in Argentina have been falling recently, which is great because I can now hire more people and buy material cheaper than I used to. Also, I was able to find more workers at lower pay because this unemployment rate has been rising. However, some crazy government people want to change things. I don’t know exactly how their ideas will affect me in the long run, but I am worried. They basically want to lower the unemployment rate, and I might have…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co