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3 years ago

When the government's budget deficit increases the government is borrowing less and public savings increases.

Business

1 answer:

rjkz [21]3 years ago

3 0

The given statement is false.

Government budget deficit occurs when government spending exceeds its income. When government deficit increases, debt increases. This is because a deficit would need to be funded by additional borrowing. Thus, borrowing increases.

Public saving is national income less consumption and government spending. When deficit increases, government spending increases and public savings decline.

A similar question was answered here: brainly.com/question/10876388

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If the economy is experiencing less than full-employment, what does it imply?

a_sh-v [17]

Answer:

It implies that the economy is in recession. Less than full employment equilibrium is a macroeconomic term used to describe a situation where an economy's short-run real gross domestic product (GDP) is lower than that same economy's long-run potential real GDP

4 0

3 years ago

Read 2 more answers

Let qa be the quantity demanded of good a, pa be the price of good a, pb be the price of good b, and m be income. let the demand

-BARSIC- [3]

Answer: Cross price elasticity is - 0.12

Explanation:

Cross price elasticity measures the responsiveness of quantity demanded of good a to a change in any of its related variable such as good b.

$Qa=86-5Pa-4Pb+2M$

Given,

Pa=6, Pb=3, and M=30,

$Qa = 86 - 5(6) - 4(3) + 2(30)$

$Qa = 86 - 30 - 12 + 60$

$Qa=104$

So, cross price elasticity is given by

$e_{pb} = \frac{Change in Qa}{Change in Pb} * \frac{Pb}{Qa}$

$e_{pb} = -4 * \frac{3}{104}$

$e_{pb} = -0.1153$

Since, cross price elasticity is negative it means that good a and good b are complements to each other.

4 0

4 years ago

Mr. Ghani wants to deposit his savings of Rs. 50,000 in a bank which offers 8% interest compounded semi-annually to withdraw Rs.

Harman [31]

Answer:

How many withdrawals will he or his heir (in case of his death) be able to make before the entire amount is exhausted is explained below in detail explanation.

Explanation:

Let the no of withdrawals be n, then

Present value of n withdrawals = 50000

Interest rate per 6 months =8%/2 =4%

Withdraw amt/(Int rate)*(1-1/(1+interest)^n) = 50000

=> 2500/0.04*(1-1/1.04^n) = 50000

1/1.04^n = 0.2

1.04^n = 5

=> n = ln(5) / ln(1.04) = 41.03

Total 41 withdrawals of Rs.2500 can be made (with a smaller 42nd installment of less than Rs.2500)

8 0

3 years ago

Charleston Clothing purchased land, paying $ 110,000 cash and signing a $ 280,000 note payable. In addition, Charleston paid d

Reil [10]

Answer:

Dr Land 397,950

Cr Cash 117,950

Cr Notes payable 280,000

Explanation:

Certain ordinary and necessary costs can be included in the purchase cost of land:

cost of the land
title fees
applicable taxes
legal fees
broker fees
survey costs
leveling costs
zoning fees
etc.

In this case, the total purchase cost of the land = $110,000 + $280,000 + $1,400 + $650 + $5,900 = $397,950

3 0

3 years ago

uppose a Starbucks tall latte cost $4.00 in the United States, 5.00 euros in the euro area and $2.50 Australian dollars in Austr

max2010maxim [7]

Answer: Nether Australia or Europe

Explanation:

Purchasing power parity is a notion that states that prices of the same or similar goods should have the same price across the world after adjusting for exchange rate differences.

If the price of a tall latte in the U.S. is $4,00, it should be the same price in Europe and Australia after exchange rate adjustments.

$4.00 in Euro is: $4.00 in Australian dollars is:

= 4 * 0.8 = 4 * 1.4

= €3.20 = $5.60

Purchasing power parity does not hold in wither countries because the prices of the lattes are not equal to the $4.00 in the U.S. after adjustments for exchange rates.

4 0

3 years ago