Question

When talking about budgets, deficits, and surpluses: True or false, we must always balance our budgets...

When talking about budgets, deficits, and surpluses: True or false, we must always balance our budgets in the short run, Explain your answer.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

True, Just like a household, a government has income and outlays. If a household’s outlays exceed its income, then it must borrow to finance its spending. And if a household borrows repeatedly, it builds up debt. The same is true of governments. If a government spends more than its income, then it is running a deficit that must be financed by borrowing. Repeated government deficits lead to the existence of a stock of government debt. Balanced budget is a situation in economy where revenues is equal to expenditure.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A constraint is always a tangible thing affecting our business. True / False In deciding on...
A constraint is always a tangible thing affecting our business. True / False In deciding on whether to accept a special order, you want to consider both the additional revenues as well as the additional costs. True / False Avoidable fixed costs should be considered in a decision to make or buy a component. True False The cost of equipment purchased last year should be included in the cost of an alternative when deciding to make or buy a component....
Answer true or false: The fact that the sum of our fitted residuals is zero, when...
Answer true or false: The fact that the sum of our fitted residuals is zero, when we estimate a model with Ordinary Least Squares, depends on the model including an intercept. Answer true or false: Contrary to the statement above, the reason that the fitted residuals sum to zero is because of the statistical property that the expected value of an unobserved disturbance term (u) is zero; this means that the u's in our model sum to zero, so the...
True, False or Uncertain: "Long-run cost is always lower than that of short-run cost". Explain.
True, False or Uncertain: "Long-run cost is always lower than that of short-run cost". Explain.
1. True/False/Uncertain: There may always be someone who loses from trade. (Hint: when T/F/U questions do...
1. True/False/Uncertain: There may always be someone who loses from trade. (Hint: when T/F/U questions do not specify a model, your answer must consider all models that could apply, explain how they apply, and what their response would be.) 2. True/False/Uncertain: According to the Ricardian model, relative prices are always dictated by your country's labor productivity in each industry. 2. True/False/Uncertain: According to the Ricardian model, relative prices are always dictated by your country's labor productivity in each industry.
1. True or False: If our data do not achieve the level of statistical significance that...
1. True or False: If our data do not achieve the level of statistical significance that we had established, then the null hypothesis must be accepted as true. 2. True or false: In a normal distribution curve, the tails of the curve are asymptotic to the y-axis. Please answer both 1 & 2. Thank you in advance.
State whether the following statements are TRUE or FALSE. Briefly explain your answer. a. When the...
State whether the following statements are TRUE or FALSE. Briefly explain your answer. a. When the Federal Reserve conducts an open sale of government bonds, the federal funds rate will fall. b. An expansionary monetary policy does not lead to an increase in output in the short run.
Is the following statement true false or uncertain? Economic growth in China will always make China...
Is the following statement true false or uncertain? Economic growth in China will always make China better off, but make its trading partners, like the United States, worse off. You must explain the reason for your answer and illustrate your answer with any relevant diagrams.
For each of the following statement, determine it is “always true” or “always false”. Explain your...
For each of the following statement, determine it is “always true” or “always false”. Explain your answer. (a) For any matrix A, the matrices A and −A have the same row space. (b) For any matrix A, the matrices A and −A have the same null space. (c) For any matrix A, if A has nullity 0, then A is nonsingular.
1.True or False On a given indifference curve, the marginal rate of substitution is always decreasing....
1.True or False On a given indifference curve, the marginal rate of substitution is always decreasing. (Explain your answer) 2 Common fallacies Why are these statements wrong? (a) Since consumers do not know about indifference curves or budget lines, they cannot choose the point on the budget line tangent to the highest possible indifference curve. (b) Inflation must reduce demand since prices are higher and goods are more expensive.
When thinking of any research project, we should always design our studies: a.Group of answer choices...
When thinking of any research project, we should always design our studies: a.Group of answer choices Depending on the research question, it may be quantitative, qualitative or mixed b. As quantitative studies always c. As qualitative studies always
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT