Explain, using appropriate diagrams, how a rise in the household saving rate can cause a fall in GDP, and how a fiscal stimulus might offset this.
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Explain, using appropriate diagrams, how a rise in the household saving rate can
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- Exercise D24 Compare two policies: a tax cut on income or an increase in government spending on roads and bridges. What are both the short-term and long—term impacts of such policies on the economy?Using diagrams can you please show how the rise in the household saving rate can cause a fall in GDP, and how a fiscal stimulus might off this? (thank you - will thumb up answer when I see it)If the economy is in a recessionary period how, specifically, might the government use their three tools? three tools change the tax rate change the level of govertment spending change transfer payments
- Assume there is no discretionary increase in government spending. Explain how an improving economy will affect the budget balance and, in turn, investment and the trade balance.When the economy is in a recessionary mode, what will likely be the actions by government using fiscal policy?6 T/F/U. To counterbalance a decrease in investment during a recession, governments offer tax credits to increase investment. Draw and label a figure showing why this is or isn't the case.
- Which of the following is NOT a problem associated with implementing fiscal policy. a. Policy lags b. Information lags c. Interest rate lags Od. Impact lagsWho is in charge of fiscal policies, and how do their different multipliers work?Which of the following is carried out in an expansionary fiscal policy? a. Higher taxes and higher government expenditure b. Lower taxes and higher government expenditure c. Higher taxes and lower government expenditure d. Lower taxes and lower government expenditure.
