Question
In: Economics
Some argue that the government guarantees on loans to students do not result in an increase...
Some argue that the government guarantees on loans to students do not result in an increase in government spending since only “loans” are involved. The same claim is echoed for the case of corporations that receive government guarantees on billions of loans by private banks for private sector projects. Evaluate these claims.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Some economists argue that the government intervention makes the economic outcome even worse. Some argue that...
Some economists argue that the government intervention makes the
economic outcome even worse. Some argue that there are important
economic roles of the government. What is your opinion? Does the
government do good or bad?
Briefly discuss.
Some people argue that government-owned enterprises do not perform as well as private enterprises. Specifically, government-owned...
Some people argue that government-owned enterprises do not
perform as well as private enterprises. Specifically,
government-owned enterprises cannot efficiently allocate resources
used in the production process. Do you agree with this view? Please
use economic theories to explain in detail why you think this is
correct or why this statement is not reliable. In your explanation,
please make a comparison between a government-owned company and a
private company in the same industry to support your argument. You
may compare the...
Do you think student loans are a benefit to students, a detriment to students, or both?...
Do you think student loans are a benefit to students, a
detriment to students, or both? Explain in about words please.
2-) The Government observes a significant amount of unemployment in the economy. Some argue that the...
2-) The Government observes a significant amount of unemployment
in the economy. Some argue that the government should stimulate the
economy in order to decrease the unemployment level using monetary
policy.
a) Using the theory of liquidity preference, show the effects of
expansionary monetary policy. What will happen to the interest
rate? What will happen to the aggregate demand as a result? You
must explain why we observe this relationship.
b) Draw the new short-run equilibrium of the economy. What...
2-) The Government observes a significant amount of unemployment in the economy. Some argue that the...
2-) The Government observes a significant
amount of unemployment in the economy. Some argue that the
government should stimulate the economy in order to decrease the
unemployment level using monetary policy.
a) Using the theory of liquidity preference,
show the effects of expansionary monetary policy. What will happen
to the interest rate? What will happen to the aggregate demand as a
result? You must explain why we observe this relationship.
b) Draw the new short-run equilibrium of the
economy. What...
2-) The Government observes a significant amount of unemployment in the economy. Some argue that the...
2-) The Government observes a significant amount of
unemployment in the economy. Some argue that the government should
stimulate the economy in order to decrease the unemployment level
using monetary policy.
a) Using the theory of liquidity preference, show the effects
of expansionary monetary policy. What will happen to the interest
rate? What will happen to the aggregate demand as a result? You
must explain why we observe this relationship.
b) Draw the new short-run equilibrium of the economy. What...
Some politicians and economists argue that tax cuts are beneficial for the government budget balance and...
Some politicians and economists argue that tax cuts are
beneficial for the government budget balance and are also
beneficial for the economy in the short run and the long run.
Explain their arguments and evaluate them briefly.
Some economists, such as Paul Krugman, argue for government to take a more Keynesian approach to...
Some economists, such as Paul Krugman, argue for government to
take a more Keynesian approach to promoting economic growth—that
government borrowing can be economically healthy, in developing
infrastructure for future needs or to spend its way out of a
recession. More conservative economists argue that a country’s
economic growth over the long term is better obtained through a
tighter monetary policy and a more aggressive approach to balancing
the budget. Which is more important for a healthy economy, a
balanced...
Some economists argue that the government should avoid active use of monetary and fiscal policy to...
Some economists argue that the government should avoid active
use of monetary and fiscal policy to try to stabilize the economy.
What are the key points of each side of the issue? Explain what
opinion you support and why.
What are Syndicated Loans? Why do you think that there has been an increase in their...
What are Syndicated Loans? Why do you think that there has been
an increase in their use, particularly in Australia?
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