what is the effect in increase in government expenditures when there is no taxes and deficit is solved by borrowing?

Q: What are the president's budget request responsibilities?

A: President's budget request: The budget process in the U.S begins when the President submits a budget…

Q: A government surplus can decrease investment through the crowding-out effect because the surplus…

A: A government surplus can decrease investment through the crowding-out effect because the surplus…

Q: Which of the following is a way to finance a fiscal deficit? Select one: a. Indirect taxes. b.…

A: The fiscal deficit occurs when the government's expenditure is greater than the government's…

Q: Q6. How does fiscal policy affect the economy?

A: Answer: Fiscal policy: fiscal policy refers to the policy of government in which the government…

Q: What would be the value of interest payments if primary deficit is $27,000 million and the fiscal…

A: The data presented in the question is as follows:- Primary deficit = $27,000 million Fiscal deficit…

Q: What is deficit, and why is the government willing to do this? What is expected to happen to the US…

A: At the point when a government's expenditures on goods, services, or transfer payments surpass their…

Q: What are the the Costs and Benefits of Deficits?

A: The deficit is the situation when expenditure is higher than the revenues of an economy.

Q: If you were the Prime Minister of Malaysia, what would you do to reduce the fiscal deficit of the…

A: In Malaysia, it can be seen that the debt to GDP ratio is very high due to which government is…

Q: How can a government that isn't running a deficit still get itself into financial trouble?

A: When the government revenue is less than government expenditure it leads to deficit (Budget…

Q: Distinguish between deficit and debt.

A: Deficit refers to the outflow of money that is greater than the inflow of money. For example, a…

Q: What is meant by revenue deficit and what does it indicate

A: There are three main deficit of any government which are:- (1) Revenue deficit (2) Fiscal deficit…

Q: 1. The notion of functional finance says that: the economic function of the President is to maintain…

A: Functional Finance: Functional finance says that the government should not be concerned with…

Q: when is the most appropriate time economically speaking for the federal budget be in a deficit?

A: A budget deficit is a situation when government spending exceeds the government's total income. A…

Q: What is a budget deficit? How does it affect interest rates, investments and economic growth?

A: Budget deficits happen when spending is greater than revenue and signify the financial strength of a…

Q: Will a budget deficit be more expansionary if it is financed by borrowing from the Federal Reserve…

A: If the budget deficit is financed by borrowing from Federal Reserve, it will cause to increase the…

Q: Summarize MMT in one sentence.

A: MMT means Modern monetary or money theory.

Q: Calculate interest payments if fiscal deficit is $77 million and primary deficit is $50 million

A: The information being given to us is as follows:- Fiscal deficit = $77 million Primary deficit = $50…

Q: There is $10 trillion in the loanable funds market.  $6 trillion in private borrowing and $4…

A: Crowding out is a condition when the government expenditure increases but this increase in the…

Q: Explain the difference between our federal government's deficit and debt.

A: A government budget is a statement of its planned expenditures and revenue receipts for a given time…

Q: In an economy, the total borrowings are $31,000 and capital expenditure is $7000 Find the value of…

A: The information being given is:- Total borrowings = $31,000 Capital expenditure = $7000 We have to…

Q: Find the value of fiscal deficit if the primary deficit is 6100 and the interest payments are 50?

A: Actually in the given question, We can see that Primary deficit = 6100 Interest payment = 50 Fiscal…

Q: if the government budget deficit equals $240 billion and the money supply increases by $100 billion,…

A: The budget deficit is an excess of government spending over its revenue. To meet the deficit, the…

Q: Explain how the Finance Minister is held accountable.

A: A finance minister is a person in charge of the execution of one or more of government finances,…

Q: Is it a good policy for the government to create budget deficit?  Why and why not?

A: The government is creating a budget deficit in order to stimulate the aggregate demand. To boost the…

Q: What is the difference between the national debt and the deficit?

A: Debt and deficit are two of the most well-known terms in all of large scale money, and they're…

Q: (Chronic Deficits) Why has the federal budget been in deficit in all but 14 years since 1929?

A: When the expenditures are greater than what is earned, there exists a budget deficit in the economy.…

Q: Why do government budget deficit grow during recessions?

A: Recession is refers to the situation of lower economic activity. During recession, the economic…

Q: In case the government is experiencing deficit in its budget, it resorts to borrowing to close the…

A: The budget deficit is an excess of government (G) expenditure over G revenues. To close the deficit,…