Trace the implications of a government budget surplus on the following: a. National saving b. Interest rates
Question:
a. National saving
b. Interest rates
c. Private investment
d. Economic growth
e. Future living standards
When tracing the effects of the budget surplus, list the assumptions you are making.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
a Other things being equal national saving will increase assuming that th...View the full answer
Answered By
Branice Buyengo Ajevi
I have been teaching for the last 5 years which has strengthened my interaction with students of different level.
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Public Finance A Contemporary Application of Theory to Policy
ISBN: 978-1285173955
11th edition
Authors: David N Hyman
Question Posted:
Students also viewed these Corporate Finance questions
-
A government budget surplus _______. A. increases the supply of loanable funds B. raises the real interest rate C. decreases the demand for loanable funds and lowers the real interest rate D....
-
Explain the implications of a value-to-book ratio that is exactly equal to 1. Compare the implications of a value-to-book ratio that is greater than 1 to those of a value-to-book ratio that is less...
-
Explain the implications of a value-to-book ratio that is greater than the market-to-book ratio. Explain the implications of a value-to-book ratio that is less than the market-to-book ratio.
-
A company issues a callable (at par) ten-year, 7% coupon bond with annual coupon payments. The bond can be called at par in one year after release or any time after that on a coupon payment date. On...
-
Two devices have been proposed to reduce the air pollution resulting from the emission of carbon monoxide (CO) from the exhaust of automobiles. To evaluate the effectiveness of the devices, 48 cars...
-
Which of these are functional interfaces? A. Lion B. Tiger C. Both Lion and Tiger D. Neither is a functional interface. E. The code does not compile. interface } Lion { public void roar(); default...
-
If a PV array has a maximum power output of \(10 \mathrm{~W}\) under an insolation level of \(600 \mathrm{~W} / \mathrm{m}^{2}\), what must the insolation be to achieve a power output of \(17...
-
The Mixing Department manager of Malone Company is able to control all overhead costs except rent, property taxes, and salaries. Budgeted monthly overhead costs for the Mixing Department, in...
-
The picture shows six different situations of a box with one or two horizontal forces applied. The mass of each box is given, and the strength of each force is specified in terms of F. In each case...
-
Through Engineering, human achievement continues to advance. Write about your favorite example of engineering in action and what impresses you about it from an Engineering standpoint.
-
The classical economists argued that budget deficits would not affect current spending. Suppose the federal government increases its purchases of goods and services by $100 billion this year....
-
Suppose gross saving in the United States is 20 percent of Gross National Product (GNP). If business saving is 15 percent of GNP and government saving is 4 percent of GNP, what percent of GNP is...
-
The gamma ray emitted when oxygen-19 gives off a beta particle is 0.197 MeV. What is its energy in joules? (See Exercise 13 for the definition of a megaelectron volt.)
-
Mercier Corporation's stock is selling for $78.99. It has just paid a dividend of $4.25 a share. The expected growth rate in dividends is 5.5 percent. a) What is the required rate of return on this...
-
A Treasury bond with maturity exactly 18 years and 5 months and coupon 5.0 percent trades at an yield to maturity (YTM) of 3.3 percent (BEY). What is the value of the bond (and, therefore, its dirty...
-
Pension fund UPNC has a fixed-income portfolio consisting of A=600M in assets and L=700M in liabilities. The duration of the assets is D A =16 and that of the liabilities is D L =27. To bring the...
-
Sure Tool Company is expected to pay a dividend of $2 in the upcoming year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 14%. Analysts expect the price of...
-
A savings account pays 36% interest per annum compounded continuously. How much must be invested now in order to accumulate to $100,000 at the end of 10 years? Explain the significance of the...
-
Find a company in your community that uses Scrum or XP (or variations thereof) as its development methodology. Learn how the company has applied the methodology and how it applies the principles and...
-
Consider the circuit of Fig. 7.97. Find v0 (t) if i(0) = 2 A and v(t) = 0. 1 3 ett)
-
List alternatives to taxation as a means of financing government expenditures. Give an example for each alternative.
-
How can inflation be viewed as a form of taxation?
-
A state lottery uses 35% of lottery ticket revenue for prizes, 15% for administrative and retail costs, and 50% of ticket sales revenue for general state government expenditures. Lottery ticket...
-
The imposition of a ceiling on the length of time a criminal case should take to get to trial is a multifaceted issue, balancing the defendant's right to a timely trial with the complexities of...
-
Discuss three changes written into the Constitution in 1789 that changed the government from what it was under the ArticIes of Confederation?
-
Assume South Park is initially closed to trade. Domestic supply and demand for winter hats is given by the following equations: D = 60 - 4P, S = 2P - 6. a. Suppose South Park opens up to trade and...
Study smarter with the SolutionInn App