What are the three initial conditions that trigger economic ...

[lbcchick]

What are the three initial conditions that trigger economic populism?
 
  What will be an ideal response?

Question 2

Which of the following is NOT a problem with excessive debt?
 
  A) It worsens the central government's budget position by adding large debt service payments to other budget items.
  B) It reduces the quantity of resources available to invest in economic development.
  C) If debt service is substantial, schools, health clinics, roads, ports, other infrastructure, and social needs are less likely to be addressed.
  D) It can reduce the chance of a crisis.

[firehawk60]

Answer to Question 1

Economic populism is usually triggered by three initial conditions. First, there is a deep dissatisfaction with the status quo, usually as a result of slow growth or recession. Second, policy makers reject the traditional constraints on macro policy. Budget deficits financed through printing money are justified by the existence of high unemployment and idle factories, which offer room for expansion without inflation. Third, policy makers promise to raise wages while freezing prices and to restructure the economy by expanding the domestic production of imported goods, thereby lessening the need for foreign exchange.

Answer to Question 2

D

[lbcchick]

Correct answers!

[firehawk60]

Great! Please up vote