How could a persistent government deficit ‘crowd out’ investments and net exports? Describe and illustrate using...

How could a persistent government deficit ‘crowd out’ investments and net exports? Describe and illustrate using diagrams for national investment and national savings as well as the diagram for the macroeconomic model (aggregate demand and aggregate supply)

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Rahul Sunny answered 8 months ago

Explain why government budget deficits crowd out private investment spending in a closed economy, but crowd out net exports in a small open economy.

Explain why government budget deficits crowd out private investment spending in a closed economy, but crowd out net exports in a small open economy. Assume prices are flexible and that factors of production are fully employed in both economies. Assume there is perfect capital mobility for the small open economy

how might federal deficits crowd out private domestic investment? How could this crowding out affect future...

how might federal deficits crowd out private domestic investment? How could this crowding out affect future living standards?

Does government borrowing crowd out public sector spending?

Explain why government budget deficits crowd out private investment spending in a closed economy but crowd...

Explain why government budget deficits crowd out private investment spending in a closed economy but crowd out net exports in a small open economy. Assume that prices are flexible and that factors of production are fully employed in both economies. Assume that there is perfect capital mobility for the small open economy.

Explain why government budget deficits crowd out private investment spending in a closed economy, but crowd...

Explain why government budget deficits crowd out private investment spending in a closed economy, but crowd out net exports in a small open economy. Assume prices are flexible and that factors of production are fully employed in both economies. Use the basic version of the open-economy model that abstracts from foreign debt accumulation.

. Explain why, according to the classical model, an increase in government purchases will “crowd out”...

. Explain why, according to the classical model, an increase in government purchases will “crowd out” investment. Suppose that increased consumer confidence leads to an increase in autonomous consumption. Would that also crowd out investment, according to the classical model? Why or why not?

Describe and illustrate, using simplified bank balance sheets, how a bank could find itself with a...

Describe and illustrate, using simplified bank balance sheets, how a bank could find itself with a liquidity crisis and a capital reserve crisis (two different crises). Describe and explain the actions it can take to move back to more prudent liquidity and capital reserve levels after such crises. (300 words max + tables if required)

How can you explain a persistent/sustained US trade deficit?

(a) define net exports and net foreign investment (b) explain how and why net exports and...

(a) define net exports and net foreign investment (b) explain how and why net exports and net foreign investment are related (c) Suppose that real interest rates decrease in the rest of the world,but not in Hong Kong. Explain how this would be likely to affect net foreign investment in Hong Kong?

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How could a persistent government deficit ‘crowd out’ investments and net exports? Describe and illustrate using...

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Explain why government budget deficits crowd out private investment spending in a closed economy, but crowd out net exports in a small open economy.

how might federal deficits crowd out private domestic investment? How could this crowding out affect future...

Does government borrowing crowd out public sector spending?

Explain why government budget deficits crowd out private investment spending in a closed economy but crowd...

Explain why government budget deficits crowd out private investment spending in a closed economy, but crowd...

. Explain why, according to the classical model, an increase in government purchases will “crowd out”...

Describe and illustrate, using simplified bank balance sheets, how a bank could find itself with a...

How can you explain a persistent/sustained US trade deficit?

How can you explain a persistent/sustained US trade deficit?

(a) define net exports and net foreign investment (b) explain how and why net exports and...