Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Chapter 31, Problem 8RQ

How would you expect larger budget deficits to affect private sector investment in physical capital? Why?

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What are some fiscal policies that might encourage economic growth ? Please answer this question carefully! What are some fiscal policies that might improve a society's human capital? Please answer this question carefully! How would you expect larger budget deficits to affect a private sector investment in physical capital? Why? Please answer this question carefully!
Using a graphical analyses explore the consequences for a hypothetical developing economy, if the the rate of borrowing to fund a fiscal deficit is growing annually at a faster rate than GDP.
Explain why the government might prefer to provide incentives to private firms to do investment or research and development, rather than simply doing the spending itself?

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