Question

(((c. Does the source of funding matters – whether by a gift from the World Bank? a loan from the IMF? Or increased government spending financed by borrowing? Does it matter if the economy were in “full employment”?)))

B. Would your answer to part c be different if the question were related to a local region or a state within the general economy with free mobility of resources? Why or why not? As an example consider an increase in autonomous spending in the Buffalo Metropolitan area as a result of 1. The World University Games (which lasted only a couple of weeks). 2. The increased bridge crossing of Ontario residents into Buffalo in search of goods and services as a result of increased Provincial sales taxes in Ontario and a rise in the value of the Canadian dollar relative to the USD dollar that have lasted for a good number of years?

Answer 1