Macroeconomics, 6e (Abel et al.) Chapter 15 Government
... C) change the balance between private and public expenditures. D) change the composition of consumption, investment, government spending, and net exports. Answer: B Diff: 1 Topic: Section 15.2 Question Status: Previous Edition ...
... C) change the balance between private and public expenditures. D) change the composition of consumption, investment, government spending, and net exports. Answer: B Diff: 1 Topic: Section 15.2 Question Status: Previous Edition ...
D : M F I
... 4.13 Revenue deficit increased from an average of 2.39 per cent of GDP during the Seventh Five Year Plan (1985-90) to an average of 3.62 per cent during the Ninth Plan (1997-2001). It was around 17 per cent of the revenue receipts and around 15 per cent of revenue expenditure during 1985-90. The rat ...
... 4.13 Revenue deficit increased from an average of 2.39 per cent of GDP during the Seventh Five Year Plan (1985-90) to an average of 3.62 per cent during the Ninth Plan (1997-2001). It was around 17 per cent of the revenue receipts and around 15 per cent of revenue expenditure during 1985-90. The rat ...
Assessment of the Fiscal Stance
... Without a strong framework, there is a risk that as crisis memories fade support for sound fiscal policy will fade too. Political pressures related to the electoral cycle could result in budgetary policy moving in an overly expansionary and therefore pro-cyclical direction, despite the damage this h ...
... Without a strong framework, there is a risk that as crisis memories fade support for sound fiscal policy will fade too. Political pressures related to the electoral cycle could result in budgetary policy moving in an overly expansionary and therefore pro-cyclical direction, despite the damage this h ...
Why Deficits Don?t Matter
... economists, think that it operates by the familiar rules of household finance. Therefore, we find it plausible when we hear politicians and government watchdogs urging us to balance the budget, control the urge to spend and pay down the debt." The mantra on the right: the federal government has to s ...
... economists, think that it operates by the familiar rules of household finance. Therefore, we find it plausible when we hear politicians and government watchdogs urging us to balance the budget, control the urge to spend and pay down the debt." The mantra on the right: the federal government has to s ...
Chapter 14
... zero. This implies that the government must run a negative primary deficit equal to the interest payment on its outstanding debt. The Ricardian Equivalence argues that it does not matter whether government spending is financed by debt or taxes. When government spending is financed by debt, househo ...
... zero. This implies that the government must run a negative primary deficit equal to the interest payment on its outstanding debt. The Ricardian Equivalence argues that it does not matter whether government spending is financed by debt or taxes. When government spending is financed by debt, househo ...
Chapter 1 U G F
... The economy has shown signs of recovery in 2009-10 and there is a need to revert to the fiscal correction path as recommended by the Thirteenth Finance Commission and as emphasized in the budget speech in 2009-10 and 2010-11. High growth target of 9 per cent with inclusive development is achievable ...
... The economy has shown signs of recovery in 2009-10 and there is a need to revert to the fiscal correction path as recommended by the Thirteenth Finance Commission and as emphasized in the budget speech in 2009-10 and 2010-11. High growth target of 9 per cent with inclusive development is achievable ...
Achim Truger, Henner Will, The German `debt-brake` - a
... savings of the German private sector (including the assets of private pension schemes) will be diverted in the future, but it is likely that this measure will render the financial markets considerably less stable in the long term. Secondly, by using a debt brake, Germany’s fiscal policy is ignoring ...
... savings of the German private sector (including the assets of private pension schemes) will be diverted in the future, but it is likely that this measure will render the financial markets considerably less stable in the long term. Secondly, by using a debt brake, Germany’s fiscal policy is ignoring ...
Chapter 1
... of CA deficit and the government budget deficit, known as the twin deficit hypothesis, derives from the Keynesian tradition. According to this view an expansionary fiscal policy stimulates output and demand which has a deteriorating influence on the CA. At the other extreme, the two deficits have no ...
... of CA deficit and the government budget deficit, known as the twin deficit hypothesis, derives from the Keynesian tradition. According to this view an expansionary fiscal policy stimulates output and demand which has a deteriorating influence on the CA. At the other extreme, the two deficits have no ...
Controversy Over the Federal Budget Deficit
... spending of G1 and taxes of T1. Now let the government decide to increase the deficit by lowering T1, while holding government spending fixed. This has no initial effect on the money market since taxes do not directly affect the demand or supply of money. Therefore, the LM curve does not shift. Howe ...
... spending of G1 and taxes of T1. Now let the government decide to increase the deficit by lowering T1, while holding government spending fixed. This has no initial effect on the money market since taxes do not directly affect the demand or supply of money. Therefore, the LM curve does not shift. Howe ...
Figure 12.1A Federal Budget Outlays, Receipts, Deficits and
... use or in a secure electronic network environment that prevents downloading or reproducing the copyrighted material. Otherwise, no part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including, but not limited to ...
... use or in a secure electronic network environment that prevents downloading or reproducing the copyrighted material. Otherwise, no part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including, but not limited to ...
The Current Account Deficit: Structural Improvements
... The monetary policy framework has been strengthened in recent years. The joint statement by the Treasurer and Governor of the Reserve Bank in August 1996 formalised the target of achieving 2 to 3 per cent underlying inflation on average over the medium term. It also provided for greater public accou ...
... The monetary policy framework has been strengthened in recent years. The joint statement by the Treasurer and Governor of the Reserve Bank in August 1996 formalised the target of achieving 2 to 3 per cent underlying inflation on average over the medium term. It also provided for greater public accou ...
Fiscal Policy
... Changes in Taxes • When the government cuts personal income taxes, it increases households’ take-home pay. – Households save some of this additional income. – Households also spend some of it on consumer goods. – Increased household spending shifts the aggregatedemand curve to the right. ...
... Changes in Taxes • When the government cuts personal income taxes, it increases households’ take-home pay. – Households save some of this additional income. – Households also spend some of it on consumer goods. – Increased household spending shifts the aggregatedemand curve to the right. ...
Figure 5-1 Real Government Expenditures, Real Government
... Persistent budget deficits have another implication. It raises the ...
... Persistent budget deficits have another implication. It raises the ...
Macroeconomic Policy Debates
... Two Debates About Inflation Targeting DEBATE 1: SHOULD THE FED FOCUS ON ONLY INFLATION? We have learned that in the long run, monetary policy can influence only the level of prices, not the level of employment. Proponents of inflation targeting argue that the Fed should have only one primary goal: c ...
... Two Debates About Inflation Targeting DEBATE 1: SHOULD THE FED FOCUS ON ONLY INFLATION? We have learned that in the long run, monetary policy can influence only the level of prices, not the level of employment. Proponents of inflation targeting argue that the Fed should have only one primary goal: c ...
1 - Whitman People
... possible remedies (tax increases or cuts in government spending) will serve to be contractionary at a time when the economy is in need of an expansion. Difficulty: E ...
... possible remedies (tax increases or cuts in government spending) will serve to be contractionary at a time when the economy is in need of an expansion. Difficulty: E ...
chapter summary
... Since the Great Depression, federal budgets have been in deficit 85% of the years. During the 1980s, large tax cuts and higher defense spending contributed to relatively large deficits. The 1990s saw the deficit disappear and turn into a surplus by 1998. During the recession of 2001, tax cut ...
... Since the Great Depression, federal budgets have been in deficit 85% of the years. During the 1980s, large tax cuts and higher defense spending contributed to relatively large deficits. The 1990s saw the deficit disappear and turn into a surplus by 1998. During the recession of 2001, tax cut ...
Lec_notes_1021
... sector that is made available to the business sector. Consumer loans cancel out against some of the household saving. But, taken together, households save more than they borrow. The SS curve reflects net supply of loanable funds coming from households made available for business investment o You al ...
... sector that is made available to the business sector. Consumer loans cancel out against some of the household saving. But, taken together, households save more than they borrow. The SS curve reflects net supply of loanable funds coming from households made available for business investment o You al ...
The Importance of Being Earnest About Fiscal Responsibility
... rationale for the fiscal deficit target of 6% for the Center and states combined. The Commission argued as follows. The Mastricht Treaty allows its members a 3% fiscal deficit. Undoubtedly, the higher savings rate in India will allow a higher level of fiscal deficit relative of GDP to be maintained. ...
... rationale for the fiscal deficit target of 6% for the Center and states combined. The Commission argued as follows. The Mastricht Treaty allows its members a 3% fiscal deficit. Undoubtedly, the higher savings rate in India will allow a higher level of fiscal deficit relative of GDP to be maintained. ...
S t r a t e g i c A n a l y s i s - Levy Economics Institute of Bard College
... income; capital expenditure is not deducted because it is matched by an increase in tangible assets, which adds to wealth. Financial balances, unlike saving, include capital consumption5because this is an accounting entry that does not describe a money outlay--there is no corresponding transaction. ...
... income; capital expenditure is not deducted because it is matched by an increase in tangible assets, which adds to wealth. Financial balances, unlike saving, include capital consumption5because this is an accounting entry that does not describe a money outlay--there is no corresponding transaction. ...
D : M F
... 4.5 Fiscal imbalances are both transient and structural. Transient imbalances result from temporary mismatches in revenue and expenditures of the Union Government, management of which requires accommodation in the nature of ways and means advances. These transient mismatches, largely of a cyclical n ...
... 4.5 Fiscal imbalances are both transient and structural. Transient imbalances result from temporary mismatches in revenue and expenditures of the Union Government, management of which requires accommodation in the nature of ways and means advances. These transient mismatches, largely of a cyclical n ...
AGGREGATE DEMAND, AGGREGATE SUPPLY, AND MODERN …
... Short run—Deficits may be necessary to stimulate the economy. ...
... Short run—Deficits may be necessary to stimulate the economy. ...
PDF
... Fiscal policy refers to government taxing and spending for the purpose of influencing the level of employment and economic activity. The federal government often does not (some would say hardly ever) collect enough revenues to match its spending, thereby incurring a deficit. Budget deficits normally ...
... Fiscal policy refers to government taxing and spending for the purpose of influencing the level of employment and economic activity. The federal government often does not (some would say hardly ever) collect enough revenues to match its spending, thereby incurring a deficit. Budget deficits normally ...
Budget and External Deficits: Not Twins but the Same Family an
... Are the Deficits Sustainable? Neither the US budget deficit nor the US current account deficit is likely to be sustainable at their current rates of roughly 5 percent of GDP. Herb Stein’s famous remark is regularly quoted to reassure us that what is unsustainable will not continue indefinitely. Wha ...
... Are the Deficits Sustainable? Neither the US budget deficit nor the US current account deficit is likely to be sustainable at their current rates of roughly 5 percent of GDP. Herb Stein’s famous remark is regularly quoted to reassure us that what is unsustainable will not continue indefinitely. Wha ...
Week 7 Practice Quiz c Answers - The University of Chicago Booth
... There was originally $100 billion in the banking system as reserves initially. There were no new reserves injected into the system. That means that at the end, there could only be $100 billion of reserves in the banking system. ...
... There was originally $100 billion in the banking system as reserves initially. There were no new reserves injected into the system. That means that at the end, there could only be $100 billion of reserves in the banking system. ...
the analysis of evolution and financing policies of the budget deficit
... This is because, in the opinion of this paradigm, the consumption is a function that depends on the amount of resources in all generations, so that, if budget deficit would require a tax rate increase, it would not affect resources for all generations. The author believes that neither of these quota ...
... This is because, in the opinion of this paradigm, the consumption is a function that depends on the amount of resources in all generations, so that, if budget deficit would require a tax rate increase, it would not affect resources for all generations. The author believes that neither of these quota ...