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- Under which of the following conditions does a country'srun a budget deficit in a particular year? O The amount of new loans to developing nations exceeds the amount of loans paid off by developing nations.O Government spending exceeds tax revenues.O The debt owed to foreigners exceeds the debt owed to the country's citizens.O The amount borrowed exceeds the interest payment on the national debt.© Interest payments on the national debt exceed spending on goods and servicesExplain how decreased domestic investments that occur due to a budget deficit will affect future economic growth.Suppose there is an increase in budget deficit, what happens to intrest rates and national savings ?
- Consider a closed economy. If national saving is 1000, GDP is 6000, andconsumption is 4500. Further assume that the government has a deficit of 400. Iftransfer and net interest payment is 400, the tax revenue is ________ and privatesaving is __________.Explain fiscal policy and give an exmple of how it could be applied to the current COVID situation in the United States.ts that higher deficits lead to higher interest iuontmont Which of the following is
- 'The U.S., world's largest economy, went into recession in February of 2020. It has taken a broad range of steps to combat the economic disruption caused by COVID-19. In response to this crisis, governments have enacted sweeping and sizable fiscal stimulus of trillions of dollars.' Is it an appropriate policy response if the primary responsibility of the government is to maintain economic growth? Explain the significance of Fiscal policy for an economy? Is there any difference in the two approaches of fiscal expansion through - direct transfer benefit and government spending directly on purchase of goods and services that may influence real GDP? What role does multiplier play? Explicate. Support your answer with the suitable diagram/s.The us government has shutdown a number of times in recent history. Explain how a government shutdown will affect the variables inthe national investment and savings identity. Could the shut down affect the governement budge deficit?6.6) Which of the following statements about the open-economy IS curve is correct (a) It is steeper than the closed-economy IS curve because net export depends posi- tively on domestic income. (b) It would shift upward when the domestic government relaxes its import quotas. (c) All of the above. (d) None of the above.
- Predict on Ghana’s debt and its sustainability resilience for the next five years and do a graphical analysis of Ghana’s debt sustainability and its regional peers Discuss the other key macroeconomic variable aside the debt situation and project them on how Ghana’s situation may look like in the next 5 years Indicate the usefulness of Ghana’s debt sustainability resilience and how it will help Ghana’s for policy assuming you were an adviser to Ghana’s finance minister.10. Following are data relating to a nation's operations last year. Capital consumption allowances Undistributed corporate profits Personal consumption expenditures Personal savings Corporate inventory valuation adjustment Federal govemment deficit Govemment purchases of goods and services State and local governments surplus Net exports of goods and services Gross private domestic investment $150 million 40 million 450 million 50 million -5 million -30 million 10 million 1 million -2 million 200 million a. Determine the nation's gross domestic product (GDP).4.In 2007, the ________ experienced a decline in the influx of money, a drop in the interest income, and a deficit of about $400 million a year. International Monetary Fund The United Nations Development Index The World Trade Organization World Bank