Consider the following statement: Because deficit reduction is costly to the economy, governments should never run budget

Question:

Consider the following statement: “Because deficit reduction is costly to the economy, governments should never run budget deficits.”Do you agree with this statement? Briefly explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

See More Books

Question Posted: Feb 04, 2016 06:59 AM

See More Questions

Consider the following statement: Because wages and prices are sticky, the Phillips curve relationship between inflation and the output gap is valid only when the output gap is positive. Do you agree...
Consider the following statement: Because interest rates in the real world change, it is more appropriate to use the ISLM model than the ISMP model.Do you agree with this statement? Briefly explain.
Consider the following statement: Because the Chairman of the Fed is appointed by the president of the United States and serves a four-year term, the president controls the Fed. Do you agree with...
Give parametric equations and parameter intervals for the motion of a particle in the xy-plane. Identify the particles path by finding a Cartesian equation for it. Graph the Cartesian equation....
For each of the following situations, indicate whether assets, liabilities, equity, revenues, and expenses are overstated (too high), understated (too low), or unaffected by the error in the June 30,...
The Economist collects data each year on the price of a Big Mac in various countries around the world. The price of a Big Mac for a sample of McDonald?s restaurants in Europe in July 2016 resulted in...
Figure 20.23 shows a heat-integrated process for the manufacture of vinyl chloride. This design sharply reduces the utilization of utilities in Figure 20.17 without requiring additional heat...
Oxford Company has five employees. All are paid on a monthly basis. The fiscal year of the business is June 1 to May 31. The accounts kept by Oxford Company include the following: The following...
Unit Replacement Product ABCDE A Quantity 1,000 Unit Cost $ 14 Cost $ 16 Forest Company has five products in its inventory. Information about ending inventory follows. Unit Selling Price $ 20 B 800...
Jimmy owns a garden in which he has planted N trees in a row. After a few years, the trees have grown up and now they have different heights. Jimmy pays much attention to the aesthetics of his...
Evidence suggests that the method of deficit reduction that least reduces economic efficiency may be slower growth in transfer payments, such as Social Security and Medicare. a. If consumers believe...
According to Bloomberg.com, At an Oct. 7 foreign-exchange conference in New York . . . Alan Greenspan called the budget gap scary and said the federal government needs to cut spending on entitlements...
What is a creditors objective in performing an analysis of financial statements? (a) To decide whether the borrower has the ability to repay interest and principal on borrowed funds. (b) To determine...
A project has been selected for implementation. The net cash flow (NCF) profile associated with the project is shown below. MARR is 10 percent/year. a. What is the internal rate of return of this...
Match the measures of worth in the first column with the appropriate unit of measure that results from the analysis. Measure of Worth (a) Annual Worth (b) External Rate of Return (c) Future Worth (d)...
What do you know about the mathematical value of a project's internal rate of return under each of the following conditions? a. The present worth of the project is greater than 0 . b. The present...
A company is considering two alternatives, one of which must be implemented. Of the two projects, A has the higher maintenance cost, but B has the higher investment cost. The appropriate (and...
True or False: If $\operatorname{IRR}(\mathrm{A})>\operatorname{IRR}(\mathrm{B})$, then $\operatorname{ERR}(\mathrm{A})>\operatorname{ERR}(\mathrm{B})$.
Find the indicated regression model for the following data. Using aerial photography, the area A (in km 2 ) of an oil spill as a function of the time t (in h) after the spill was found to be as...
What kind of financial pressures can an LBO cause?
The table below represents the world supply and demand for natural vanilla in thousands of pounds. A large portion of natural vanilla is grown in Madagascar and comes from orchids that require a lot...
The following figure shows the supply and demand for strawberries. Answer the questions that follow. Supply and Demand of Strawberries a. Indicate the equilibrium price and equilibrium quantity. b....
Describe some of the reasons why supply changes. Improved technology typically results in lower prices for most products. Why do you think this is true? Describe the difference between a change in...
The partners mehak and simran share in the profits and losses equally and their capital accounts have credit balance s of 1 5 0 0 0 and 2 5 0 0 0 respectively. The account balances for Mehak and...
LNS Corporation reports book profit of $ 2 , 0 0 0 , 0 0 0 . The $ 2 , 0 0 0 , 0 0 0 included $ 1 5 , 0 0 0 of tax exempt interest income, a capital loss of $ 2 , 0 0 0 , depreciation expense of $ 6...
Maggie Vitteta, single, works 3 8 hours per week at $ 1 9 . 0 0 an hour. How much is taken out for federal income tax?

Consider the following statement: Because deficit reduction is costly to the economy, governments should never run budget

Question:

Step by Step Answer:

To conclude I can say that disagree There are good r...View the full answer

Macroeconomics

Students also viewed these Chemical Engineering questions