Question
In 2018, Germany's federal budget deficit amounted to $74 billion (66 billion), while Saudi Arabia's budget deficit in the same year amounted to $51 billion
In 2018, Germany's federal budget deficit amounted to $74 billion (66 billion), while Saudi Arabia's budget deficit in the same year amounted to $51 billion (195 billion riyals). Is it possible to say that the German budget deficit is significantly greater than the Saudi deficit? Does this mean that the government's economic performance is better in Saudi Arabia than in Germany? Regardless of the currency difference, what is the disadvantage of this comparison in economic terms? Suggest a solution to this defect and discuss with your colleagues how a more accurate comparison can be made between the budget deficits in these two countries. You can use the given graph or any relevant figures on the Internet with the source.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started