Question

Question from Economics of public revenue The government made a plan to borrow 1 trillion baht...

Question from Economics of public revenue

The government made a plan to borrow 1 trillion baht to fight COVID-19. Will this debt become a burden of future generation? Apply 2 models of your choice to explain your answer.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

As per debt trap models such high government borrowing leads to inability to repay and leads to high debt to GDP ratio and thus bubble of debt crashes causing recession.

As per crowding out effects, increased government spending leads to low private spending and thus the debt of government rises so high that it is unable to pay back sovereign bonds of AAA ratings as well and causes huge burden of debt on future generations.

PLEASE UPVOTE INCASE YOU LIKED THE ANSWER WILL BE ENCOURAGING FOR US THANKYOU VERY MUCH ALL THE BEST IN FUTURE

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
Question from Economics of public revenue 1.The government imposes a 10 percent tax on interest, and...
Question from Economics of public revenue 1.The government imposes a 10 percent tax on interest, and the interest which borrowers pay to the bank can get a tax deduction. How will this policy affect the government 's saving decision? Explain every case that is possible and draw diagrams to explain your answers?
1.Taxes can be justified if the government uses the revenue to (i) provide public goods such...
1.Taxes can be justified if the government uses the revenue to (i) provide public goods such as national defense. (ii) clean up negative externalities such as water pollution. (iii) regulate a common resource such as fish in a public lake. (iv) provide goods with positive externalities such as medical research. A) (ii) only B) (ii) and (iii) only C) (i), (ii), and (iii) only D) (i), (ii), (iii), and (iv) 2.A person's tax liability refers to A) the percentage of...
1. Explain two main reasons why we need to study public finance 2. Distinguish between the...
1. Explain two main reasons why we need to study public finance 2. Distinguish between the “organic view” and “mechanistic view” of the existence of government 3. Explain the concept of market failure and discuss five reasons why there is market failure 4. What is meant by market failure? Identify and discuss four conditions under which the market fails to optimally allocate resources. 5. What is meant by the term government failure and explain five reasons why there may be...
QUESTION 1 I. DEBT INSTRUMENTS GROUP A Municipal - General Obligation bonds Municipal – Special Revenue...
QUESTION 1 I. DEBT INSTRUMENTS GROUP A Municipal - General Obligation bonds Municipal – Special Revenue bonds Credit Card Asset Backed Securities Corporate Lines of Credit – revolving loans Residential Mortgage Backed Securities Investment Grade Bonds – unsecured GROUP B Leveraged Loans Non-Investment Grade Bonds – unsecured Secured Bonds – Equipment Trust Certificates - airlines 1. Select four (4) of the security types above, two (2) from Group A, two (2) from group B. For each security type, explain how...
What happened on Lebanon economics? Read this Articals and share with us your opinion and solution....
What happened on Lebanon economics? Read this Articals and share with us your opinion and solution. A Lebanese anti-government protester holds a placard as she sits for a haircut in front of the central bank headquarters in Beirut to protest against the economic policies of the bank. (AFP) A gathering of Lebanese anti-government protesters getting haircuts in front of the central bank building in Beirut last week attracted many jokes and much amusement. The protesters were expressing their rejection of...
Question 1: Case study You are a financial adviser and the following information is an extract...
Question 1: Case study You are a financial adviser and the following information is an extract of data you gathered as part of fact finding during an initial client consultation for married couple Janet and Steven Blake. Janet works as a Teacher and Steven works as town planner at the local government. The have two children who are aged 12 and 14. Janet and Steven would like to know how much money they will receive after paying tax and expenses...
Please read through the article below and answer the question at the end of the article....
Please read through the article below and answer the question at the end of the article. High-Performing Teams Need Psychological Safety. Here’s How to Create It “There’s no team without trust,” says Paul Santagata, Head of Industry at Google. He knows the results of the tech giant’s massive two-year study on team performance, which revealed that the highest-performing teams have one thing in common: psychological safety, the belief that you won’t be punished when you make a mistake. Studies show...
The data in this table are for Wisconsin in August 2020. Use the data to answer...
The data in this table are for Wisconsin in August 2020. Use the data to answer the next two questions. Population 4,661,000 Labor force participation rate 65% Unemployment rate 6.2% Question 6 (3 points) Using the data from the preceding table, determine the number of people in Wisconsin's labor force in August 2020. You do not need to show your work. Your answer: Question 7 (3 points) Using the data from the preceding table, determine the number of unemployed workers...
SECTION A: READ THE PASSAGE AND ANSWER QUESTIONS 1-3 Emma, a monthly salaried worker, received 1,300...
SECTION A: READ THE PASSAGE AND ANSWER QUESTIONS 1-3 Emma, a monthly salaried worker, received 1,300 cedis as her net salary; she heard that this year’s inflation is at 18%. This situation caused prices to soar so high that she complained about everything she buys. In the previous year she was able to buy herself, dresses, a basket of foodstuffs, a small bag of oranges, a dozen of drinks and her transportation. However, this year, she couldn’t afford the full...
ECO 101-S70: Final Quiz 2 CHAPTER 3: Demand, Supply and Equilibrium 1. Which of the following...
ECO 101-S70: Final Quiz 2 CHAPTER 3: Demand, Supply and Equilibrium 1. Which of the following could cause a decrease in consumer demand for product X? a.   a decrease in consumer income b.   an increase in the prices of goods which are good substitutes for product X c. an increase in the price which consumers expect will prevail for product X in the future d. a decrease in the supply of product X 2. If two goods are substitutes for...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT