1. When the government runs a budget? surplus, national saving ( increases / stays the same...

1. When the government runs a budget? surplus, national saving ( increases / stays the same / decreases ).

2. The early and? mid-1980s were difficult times for U.S. exporters because ( small / large ) U.S. government budget deficits led to ( low / unchanged / high ) real interest rates and thus to ( a low / a high / an unchanged ) value of the? dollar, making U.S. goods ( more expensive / less expensive ) in other countries.

Expert Solution

Rahul Sunny answered 2 years ago

14. When the federal government runs a budget surplus rather than a deficit, how will the...

14. When the federal government runs a budget surplus rather than a deficit, how will the public’s bond holdings and the supply of money be affected?

When the government runs a budget deficit,

When the government runs a budget deficit,a. national saving is higher than it would be if the budget were balanced.b. investment is lower than it would be if the budget were balanced.c. interest rates are lower than they would be if the budget were balanced.d. All of the above are correct.e. None of the above is correct.

For a closed economy, private saving is 1300 and the government is running a budget surplus...

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What is investment? How is it related to national saving? What is a government budget deficit?...

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With the aid of a diagram, comment on the effect of an increase in the government budget surplus

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The only way to pay down the national debt is to have a budget surplus. The...

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