Which summarizes the impact of the governments policy

Reference no: EM13203593

Suppose that the government cuts net taxes by $10 billion. These are lump sum taxes. To keep its budget balanced at its current level, it also reduces its spending by $10 billion. Which summarizes the impact of the government's policy action on equilibrium output?

Reference no: EM13203593

Questions Cloud

Determine how much do you have in your savings account : Suppose that you are going to buy a BMW that sells for $40,000. Assume that the interest rate on a savings account is 10% and that your savings account currently has $40,000. For simplicity, assume that BMWs are the only good in the economy.

What would the bond be worth at that point : What would be the value of this bond if interest rates fall to 5% the day after it is purchased? If interest rates fell to 5% after one year, what would the bond be worth at that point?

Identify three types of government regulation : Explain how market structure affects market performance and conduct. Identify three types of government regulation that help to improve market performance and conduct and explain how each regulation achieves its objectives and the economic justifi..

Explain what are the possible values for the first : The second number is 6 more than the first. What are the possible values for the first of the two numbers?

Which summarizes the impact of the governments policy : Suppose that the government cuts net taxes by $10 billion. These are lump sum taxes. To keep its budget balanced at its current level, it also reduces its spending by $10 billion. Which summarizes the impact of the government's policy action on eq..

Explain exponential function : Suppose that the number of homes built can be modeled by an exponential function, H= p * at , (H = p*a^t) where p is the number of new homes built in the first year recorded, and t is the number

Construct a table that shows all the possible results : Construct a table that shows all the possible results.

Calculate the required rate of return and risk premium : Determine the cost of capital for each of the financing options being considered: debt, preferred shares and new common shares. Discuss in qualitative terms, the effects of issuing preferred shares or new common shares.

Find the rate of change of the angle of elevation : A balloon rises at the rate of 8 feet per second from a point on the ground 60 feet from an observer. Find the rate of change of the angle of elevation when the balloon is 25 feet above the ground.

User Account

All Pages