Author Question: Suppose policy makers pass a budget that reduces the budget deficit. A deficit reduction package ... (Read 395 times)

nummyann · **on:** Jun 30, 2018

Suppose policy makers pass a budget that reduces the budget deficit. A deficit reduction package such as this has a greater chance of increasing current output when

A) the policy is front-loaded.
B) financial markets believe that taxes will not increase in the future.
C) financial markets believe the Fed will lower interest rates in the future.
D) all of the above
E) none of the above

Question 2

Suppose bank A has assets of 100, liabilities of 60, and capital of 40. Its leverage ratio is

A) 1.5.
B) 2.5.
C) 0.6.
D) 0.4.

Ksanderson1296 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

C

Answer to Question 2

B

nummyann · **Reply #2 on:** Jun 30, 2018

Thank you

Ksanderson1296 · **Reply #3 on:** Jun 30, 2018

Happy to help you

Author Question: Suppose policy makers pass a budget that reduces the budget deficit. A deficit reduction package ... (Read 395 times)

nummyann

Suppose policy makers pass a budget that reduces the budget deficit. A deficit reduction package ...

Ksanderson1296

Suppose policy makers pass a budget that reduces the budget deficit. A deficit reduction package ...

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nummyann

Suppose policy makers pass a budget that reduces the budget deficit. A deficit reduction package ...

Ksanderson1296

Suppose policy makers pass a budget that reduces the budget deficit. A deficit reduction package ...