« previous next »

Author Question: Wars of attrition arise in which of the following contexts? A) fiscal policy B) deficit ... (Read 285 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?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Renal calculi (stones) can form in several areas within the urinary tract. When they form in the kid Renal calculi (stones) can form in several areas within the urinary tract. When they form in the kid
Nephrolithiasis. Stones, or calculi, may form in several areas within the urinary tract. When they f Nephrolithiasis. Stones, or calculi, may form in several areas within the urinary tract. When they f
Muscle fibers consist of single, elongated, multinucleated cells that arise from the fusion Muscle fibers consist of single, elongated, multinucleated cells that arise from the fusion
Generally, the total tax burden in the United States is much lower than that of other industrialize Generally, the total tax burden in the United States is much lower than that of other industrialize
The fiscal policy to counter an inflationary gap is a(n) The fiscal policy to counter an inflationary gap is a(n)
Types of policy Types of policy
Video: Carbohydrate digestion (brush border enzymes, end products) & Carb absorption (fructose, galactose)

For a complete list of videos, visit our video library