Assume the government purposely incurs budget deficit

Assignment Help Business Economics
Reference no: EM131171788

Assume the government purposely incurs a budget deficit that is financed by borrowing. As a result, interest rates rise and the amount of consumption spending declines. This illustrates: A. the equation-of-exchange effect. B. the paradox of thrift. C. the crowding-out effect. D. the wealth effect.

Reference no: EM131171788

Questions Cloud

Find appropriate values for the temperature : Find appropriate values for the temperature of the river bed, and of the water and air. For this problem, you can assume that the water has the same temperature at every depth.
Explore funding from international lending institutions : Explore whether or not funding from international lending institutions like the World Bank and the IMF are helping or hindering the social, economic, or political development of the country that you have selected.
Inflationary pressure is growing problem for the economy : Inflationary pressure is a growing problem for the economy. Therefore, the Federal Reserve decides to pursue a policy to reduce the inflationary pressure. Which policy changes by the Fed would reinforce each other to achieve that objective?
Give a polynomial example showing that it is not sufficient : The property that the vector on the right-hand side of a differential equation points into the interior of the first orthant is obviously a necessary condition for negative cross-effects to be absent. Give a polynomial example showing that it is n..
Assume the government purposely incurs budget deficit : Assume the government purposely incurs a budget deficit that is financed by borrowing. As a result, interest rates rise and the amount of consumption spending declines.
Introduction and conclusion within the nine slides : Include an introduction and conclusion within the nine slides. In addition, include speaker's notes demonstrating synthesis of the elements listed below. Your presentation and speaker's notes must cover the following:
Enormous amount of content : Social networking has opened the doors to people around the world and provides an enormous amount of content (both good and bad) to consumers and customers and to suppliers. How has social media changed the way companies interact with consumers an..
Market equilibrium for cereals : Explain the effect of the fall in the wheat price on the market equilibrium for cereals. For those unfamiliar with U.S. geography, it is safe to assume that it is typically dry and hot in the U.S. southern states.
Identify current trends in globalization : Identify current trends in globalization. Reason whether the global economy will return to the mercantilist stage, or if benefits of free trade and market liberalization will prevail. Why or why not?

Reviews

Write a Review

Business Economics Questions & Answers

  Treasury security is paying an interest rate

A US Treasury Security is paying an interest rate of 1.18 percent for a 1 year zero coupon bond. The country of Benin is also giving a 1 year zero coupon bond. There is a probability of 0.05 that Benin will default and pay you back nothing (r=-1). Ot..

  How do properties leverage the unique qualities of the web

What is the common thread that links together most of the IAC/InterActiveCorp Web properties? How do the properties leverage the unique qualities of the Web?

  Government bond matures

A U.S government bond matures in 10 years. It's quoted price is now 96.4, which means the buyer will pay $96.40 per $100 of the bond's face value. The bond pays 5% interest on its face value each year. If $10,000 (the face value) worth of these bonds..

  Discuss the uses of elasticity of demand

Using appropriate diagrams and notations,carefully explain the relationship b/n elasticity, total revenue and marginal revenue. 2,discuss the uses of elasticity of demand.

  Developed by the financial accounting standards board

The United States uses accounting standards developed by the Financial Accounting Standards Board (FASB) known as the generally accepted accounting principles (GAAP). This system relies on rules and regulations and thus is said to be a rules-based sy..

  What is net present worth for this new computer system

Kermit is considering purchasing a new computer system. The purchase price is $100949. Kermit will borrow one-fourth of the purchase price from a bank at 10 percent per year compounded annually. The loan is to be repaid using equal annual payments ov..

  What is the slope of the inverse demand

Suppose the demand for tablets is given Q = 2000 - 10 P. Where Q is the quantity demanded and P is the price of tablets. Plot the demand curve. (Price in the vertical and quantity in the horizontal axis) What is the inverse demand?What is the slope o..

  Between patents and copyrights which reflects a free market

between patents and copyrights which reflects a free market and which is a grant of monopoly privilege by the state?

  What is the equilibrium quantity of laptops

Consider the market for laptop computers. The demand for laptops is Q = 1800 – 3P. Suppose the supply of laptops is given by Q = –200 +2P. What is the equilibrium price of laptops? What is the equilibrium quantity of laptops? What is the price elasti..

  Are they fairly consistently away from zero

which in this case is lagged second difference. Note that it remains below zero after stock market crash of 1987. You can also do same thing for or variables. Are they fairly consistently away from zero. If so, can you design a rule to make money.

  Q1 suppose that on january 1 the price of one hundred yen

q1. suppose that on january 1 the price of one hundred yen was 0.80 and ppp held. over the year the japanese inflation

  Cause the market demand curve for a good to shift

Which of the following would cause the market demand curve for a good to shift?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd