Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Questions related to tools and controversies around Fiscal policy Explain how fiscal austerity (i.e., reducing the primary fiscal deficit) can reduce Debt/GDP or increase Debt/GDP.

Questions related to tools and controversies around Fiscal policy

  1. Explain how fiscal austerity (i.e., reducing the primary fiscal deficit) can reduce Debt/GDP or increase Debt/GDP. Explain also why, the more crowding out there is, the more we expect fiscal austerity to reduce Debt/GDP.
  2. Explain why a country's Debt/GDP can decrease even while it runs primary fiscal deficits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elements Of Chemical Reaction Engineering

Authors: H. Fogler

6th Edition

9780135486221

Students also viewed these Economics questions