« previous next »

Author Question: Wars of attrition arise in which of the following contexts? A) fiscal policy B) deficit ... (Read 287 times)

D2AR0N

  • Hero Member
  • *****
  • Posts: 561
on: Jun 30, 2018
Wars of attrition arise in which of the following contexts?
 
  A) fiscal policy
  B) deficit reduction
  C) hyperinflation
  D) all of above
  E) A and B

Question 2

Suppose policy makers pass a budget that results in an increase in the budget deficit. Also assume that this fiscal policy action results in a reduction in the saving rate. To what extent will this reduction in the saving rate cause permanent changes in the rate of growth of output per worker? Explain.
 
  What will be an ideal response?


Kaytorgator

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

A budget that causes an increase in the budget deficit will cause a reduction in the saving rate. Reductions in the saving rate will only temporarily affect the growth rates of Y and Y/N. Once the new balanced growth equilibrium is achieved, the growth rates of Y and Y/N will return to their original levels.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

D2AR0N

  • Hero Member
  • *****
  • Posts: 561
Reply #2 on: Jun 30, 2018
Correct answers!


Kaytorgator

  • Sr. Member
  • ****
  • Posts: 345
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Stages of endometrial cancer. Stage I: Mutated cells arise from glandular epithelium of the endometr Stages of endometrial cancer. Stage I: Mutated cells arise from glandular epithelium of the endometr
Environmental policy Environmental policy
Scientific monitoring with environmental policy (SOER) Scientific monitoring with environmental policy (SOER)
Government in America: People, Politics, and Policy, AP Government in America: People, Politics, and Policy, AP
Key foreign policy agencies Key foreign policy agencies
The executive legislative "struggle" over foreign policy The executive legislative "struggle" over foreign policy
Video: Definitions of stroke volume, preload definition & Factors influencing stroke volume

For a complete list of videos, visit our video library