• For a country with a given debt/GDP ratio at time t-1, if the growth rate of GDP was less than the real interest rate, to prevent the increase in this ratio would it be sufficient to not run a primary deficit at time t?

• For a country with a given debt/GDP ratio at time t-1, if the growth rate of GDP was less than the real interest rate, to prevent the increase in this ratio would it be sufficient to not run a primary deficit at time t?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 17SCQ: For each of the following, indicate which type of government spending would justify a budget deficit...

See similar textbooks

Related questions

Q: Why is the strait of Hormuz important to Iran and how do they use the strait of hormuz?"

A: Answer- The location of strait of Hormuz in between Iran and Oman. This place is the most eminent…

Q: Question 3 Demand in a domestic market is represented by the curve P = 200 - Q Supply is represented…

Q: Consider a competitive industry. Every firm in this industry has a total cost function C (y) = y² +…

A: Answer: Given, Total cost function: Cy=y2+1 Industry demand curve: Dp=36-2p The equilibrium number…

Q: What is Monopolistic Competition market structure – its main features

A: Under, the Monopolistic Competition, there are an enormous number of firms that produce separated…

Q: Explain in detail using diagrams the long- un adjustment mechanism for a perfectly competitive…

A: Pecuniary diseconomies occur when an increase in the production results in an increase in the price…

Q: Mr. Song purchased a statue for $ 2500. Ten years later, he sold this statue for $ 7500. If the…

A: The Annual Percentage Rate is the yearly rate of revenue that an individual should pay on a credit,…

Q: Medicare and Medicaid provide disproportionate-share payments to hospitals whose patients are mostly…

A: Answer given below,

Q: what is the reason of decomposing total effect into substitution and income effect

A: The price impact is seen as a blend of income and substitution impacts. The substitution impact…

Q: Chatham Automotive purchased new electric forklifts to move steel automobile parts two years ago.…

A: Electric Forklifts Cost = $75,000 2 years ago Salvage Value = $10,000 Operating cost = $20,000…

Q: According to the Ramsey taxation result, which of the following markets would be the most efficient…

A: Ramsey model of optimal taxation means higher tax revenue with given level of deadweigth loss due to…

Q: メ 4 3 3 4 po ductinn cost. ties the two proquits tejether, nhat mplicity. there is ass ume no te…

A: Production costs allude to the costs an organization brings about from assembling an item or…

Q: What is economics

A: Economics is divided into two main scopes which are micro and macroeconomics. Microeconomics deals…

Q: What is the distinction between government purchases and transfer payments? What is the relative…

A: If we consider the gross domestic product (GDP) formula then it can be written as: GDP =…

Q: When focused on the youngest age group, a 20% increase in medical spending is associated with:…

A: Elasticity of health with respect to medical spending measures the responsiveness in health…

Q: U, Uz U3 U4 Us 20 28 42 60 Income Currently the consumer has $60. If there is an accident their…

A: Given information Income=60 When accident income=20 Probability of accident=0.45

Q: Based on market research, a film production company in Ectenia obtains the following information…

A: * SOLUTION :- Given that , Demand: P=1,600−10Q Total Revenue: TR=1,600Q−10Q2 Marginal Revenue:…

Q: Cournot Duopoly: Suppose two firms produce identical products and they have identical consta…

A: A firm maximizes its profit by producing its output at a level where its marginal cost is the same…

Q: With reference to the table given above, calculate: i. Gross Domestic Product at factor cost ii.…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Question 43 Over the last 50 yearn, interent rates have risen before each recession and have fallen…

A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…

Q: AmonopolysellsitsproductinboththeU

A: Answer given below,

Q: QUESTION 6 In Diamond Dybvig (DD) model of bank run, each person is either an early type, or a late…

A: Dybvig model is utilized for an inevitable methodology among the depositors and its bank run model…

Q: Show the relationship between short-run marginal and average cost curves, and long-run marginal and…

A: In the short run there are two types of costs:- fixed costs and variable costs. In the short run…

Q: Productivity relates to producing the same output with more labor hours. working harder over time.

A: Productivity implies producing more output by using the same amount of resources or producing the…

Q: What actions should be taken by 'European Central Bank' to counter the negative affects of the…

A: There are many reasons behind the Russian-Ukraine war, the main reason behind it can be considered…

Q: Beta and volatility differ as risk measures in that beta measures only non‑systematic risk, while…

A: Risk refers to the possibility of future profits or outcomes deviating from expectations.Risk refers…

Q: If the number of buyers in a market decreases, then Group of answer choices A. supply will decrease…

A: Demand curve shows an inverse relationship between price and quantity demanded. It slopes downward.…

Q: Suppose that the demand for sweatshirts at the university bookstore is given by: P = 40 – 0.2Q A)…

A: Elasticity measures the responsiveness of quantity demanded to changes in price level.

Q: Because industry X is characterised by perfect competition, every firm in the industry is earning…

A: The perfectly competitive market is characterised by the large number of buyers and sellers in the…

Q: Which of the following is related to the disadvantage of foreign direct investment (FDI) on…

A: FDI is long term investment or it is an investment that control the ownership of a firm. Usually the…

Q: All of these are correct regarding types of economic evaluation EXCEPT: a. In Cost Benefit Analysis,…

A: In the economic evaluation, Cost-utility analysis is an analysis that is used to compare the cost…

Q: Rival in Consumption? Yes No Yes A B. Excludable? No D Emma's use of good x does not affect anyone…

A: A good is classified as club good, public good, private good or common resource depending on the…

Q: Suppose that we are in a country Localia, again trading LCL as our currency. We are still trading…

A: A rise in aggregate demand is expected as a result of increased government spending. Depending on…

Q: The income components of GDP include all of the following except? A. indirect taxes B. interest…

A: Gross domestic product of a country is the market value of all final commodities and services that…

Q: You are considering purchasing a dump truck. The truck will cost $75,000 and have operating and…

A: Capital refers to the stock of assets including fixed and variable assets. It includes land,…

Q: Consider the following function: C=100+0.7Y What is the average consumption when income is 200?…

A: Given information: C = 100 + 0.7Y Y = 200

Q: Ambrose's utility function is = 4x1 ^1/2 + x2. If the price of nuts (good 1) is $1, the price of…

A: A consumer will maximise its utility at a point where marginal rate of substitution is equal to the…

Q: What is uninformed “noise” trading associated with? a. Negative autocorrelation in stock returns…

A: Market noise: Market noise can either generate profit or may lead to generate loss depending on the…

Q: Based on the condition and calculations, what is your conclusion on the marginal propensity to…

A: Given: Row 4: MPC=0.2 Spending multplier=1.25 Change in government spending=$800 Change in…

Q: monopolist has a (high/low) price elasticity of demand for its output. A monopoly is always…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Demand in a domestic market is represented by the curve P = 100 - 0.5Q. Supply is represented by P =…

A: Equilibrium is achieved at a point where demand curve intersect the supply curve.

Q: Maria loaned an amount of 100,000Php payable in 15 equal quarterly instalments. The first payment…

A: The capacity of an asset to create returns that are then reinvested or stay invested with the…

Q: In recent years, a number of cities have enacted taxes on soda and other sweetened beverages. If the…

A: Here, it is given that the government wants to decrease the healthcare cost Nd insurance rate due to…

Q: 15 10 suppty demand ey with ta How much revenue will the government gain if they put a $6 tax on…

A: Revenue gains generated by the government = Tax ×Quantity Now, the demand curve is in red line and…

Q: Consider a duopoly market, where two firms sell differentiated products, which are imperfect…

A: A duopoly is what is going on where two organizations together own everything, or virtually all, of…

Q: An nore pro and innovative, which leads to a better standard of living for everyone. However, when…

A: Meaning of Positive Externality: This happens when the utilization or creation of a worthwhile…

Q: echnical efficiency entails which of the following: a. Minimizing the quantity of resources used to…

A: Efficiency is a relative concept and technical efficiency is refer to the ability of a firm to…

Q: Superior Trading Co. operates in a competitive market, and decides which price to charge their…

A: Here, it is given that the Superior Trading Co. Make economic activities in the competitive market.

Q: A 50-mgpd (million gallons per day) water treatment plant is proposed for 2024 in Ureka. A 60-mgpd…

A: Inflation is basically defined as the rate at which prices rise over a certain period of time.As a…

Q: Cisco Corp. is exporting to the U.S. market. As Cisco does not have competition with any of the U.S.…

A: Foreign Exchange Exposure is the risk involved with fluctuating currency rates, which can have a…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Explain and expand on How does fiscal discipline help businesses to grow in an economy?
What is a budget deficit? How does a government respond to a budget deficit?
what are three ways that national debt affects the economic prosperity of a country.
What is role of the private sector in helping the Filipino government ease its fiscal pressure?
For each of the following, indicate which type of government spending would justify a budget deficit and which would not. Increased federal spending on Medicare Increased spending on education Increased spending on the space program Increased spending on airports and air traffic control
What are some fiscal policies for improving the technologies that the economy will have to draw upon in the future?
What would happen if expansionary fiscal policy was implemented in are cession but, due to lag,did not actually take effect until after the economy was back to potential GDP?
How budget deficits and national debt are defined? Is it a good policy for the government to create budget deficit? Why and why not?
Discuss the federal budget of the U.S government. should it always be balanced? when is the most appropriate time economically speaking for the federal budget be in a deficit? as a borrower how is the federal government different from the average U.S adult?
What is the General Public Debt situation in Ghana ?
1. How does fiscal policy help the Philippine economy?