Question explain why government budget deficits crowd out, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics

Basic Economics

Business Economics

International Economics

Managerial Economics

Public Economics

Home >> Microeconomics

Question: 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 where net exports is function of real exchange rate. Use diagrams to explain your answer.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M93115170

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question why would more accurate economic forecasting make

Question: Why would more accurate economic forecasting make it easier for policymakers to stabilize the economy? Describe two ways economists try to forecast developments in the economy. The response must be typed, singl ...

Question 1 what is an industry cluster and what does a

Question: 1 ) What is an industry cluster and what does a cluster mean for employment, services, infrastructure? 2) What is "an incentive based economic development strategy"? The response must be typed, single spaced, m ...

Question how would the reduction in the number of immigrant

Question: How would the reduction in the number of immigrant workers affects the economy in the short-term (Use IS-LM framework and graphs) The response must be typed, single spaced, must be in times new roman font (size ...

Question use the spreadsheet on ricardian equivalence with

Question: Use the spreadsheet on Ricardian equivalence with three periods and assume that - the government spendings are 100, 150 and 150; - households' salary is 300 in each period. Also assume that households preper sm ...

Question for purposes of this paper and the next portion of

Question: For purposes of this paper and the next portion of your marketing project, pretend that you will be opening one of the following businesses in your area: • Food Truck Vendor • Animal Sitting • Bicycle Repair Sh ...

Question consider the corn market suppose marginal revenue

Question: Consider the corn market. Suppose marginal revenue is $25 and marginal cost is $20 and the output is 30 units of corn and profits are at $20,000. You are currently producing 30 units of corn. To get to the prof ...

Question consider the following cost information for a firm

Question: Consider the following cost information for a firm that operates in a perfectly competitive market. Labor is a variable input. Q (quantity of output) Total cost ($) 0 3 2 5 4 9 6 15 8 23 10 33 12 45 (1) Ca ...

Quesiton imagine that you are considering an mba program

Quesiton: Imagine that you are considering an MBA program once you complete your health care management degree. Describe each step of the consumer decision-making process specifically from this perspective. (Your overall ...

Question a what are the principal differences between

Question: (A) What are the principal differences between government purchases of goods and services and transfer payments? (B) What are the most common kinds of transfer payments at the Federal level? At the state and lo ...

Question consider a consumer with net utility function

Question: Consider a consumer with (net utility) function given by U(x;p) = 10 ln(x+1) - px, where x is the quantity of the consumption good consumed, and p > 0 is the price of x. The consumer's income is m > 0. The leve ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As