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2 years ago

How will the increase in government spending financed by borrowing affect national savings? ap macro.

1 answer:

3 0

A lot of issues affect an economy. when government borrowing to finance the economy, an increase in the deficit will lead to high increase in interest .

Higher interest rates will tend to limit or “crowd out” a lot of private investment, and this in turn will limit growth.

<h3>How will the financing of government spending influence national savings?</h3>

Due to an increase in government expenditures, the government finances will have to try and get additional spending via borrowing.

This then will bring about reduction in public savings. When private savings are unaffected, the effect of a reduction in public savings will tend to lower the total levels of national savings.

Learn more about government spending from

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<span>A parent leads a prayer in a public park</span>

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Answer:

Present Value= $180,000

Explanation:

Giving the following information:

The bequest will provide $9,000 in the first year and will grow by 5% per year, forever.

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3 years ago

Kelly's surf shop orders 5,000 new surf boards at the beginning of the year but only sells 4,500 by the end of the year. how are

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If these were the given choices:
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C) They will be included in the government spending category of GDP.

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E) They will be included in the durable consumption category of GDP.

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4 years ago

Which of the following statements is true with regard to the departmental overhead rate method? Multiple Choice Each department

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Answer:

It is logical to use this method when overhead resources are consumed by various products in substantially different ways throughout multiple departments.

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3 years ago

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Answer:

False

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3 years ago