Author Question: What were some of the key features in terms of fiscal policy of the Stability and Growth Pact signed ... (Read 51 times)

anshika · **on:** Jun 30, 2018

What were some of the key features in terms of fiscal policy of the Stability and Growth Pact signed in 1997 by would-be members of the Euro?

What will be an ideal response?

Question 2

Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that

A) S/NA = ( + gA + gN)K/NA.
B) S/NA = (gA + gN)K/NA.
C) I/NA = ()K/NA.
D) I = K.
E) none of the above

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

Answer to Question 1

The Stability and Growth pact: (1 ) committed countries to balance their budgets in the medium run; (2 ) countries avoid excessive deficits; and (3 ) imposed sanctions on countries that ran excessive deficits.

Answer to Question 2

A