--%>
Assignment Help - homework help

Implications of fiscal deficit

Implications of fiscal deficit:

(A) High fiscal deficit entails a big amount of borrowings in which the government takes more loans to pay back it. It raises the liability of government.

(B) This leads to inflationary pressure in economy.

(C) It makes a huge burden of interest payments in future.

(D) It raises the dependence of government on foreign countries.

(E) It hampers the future development and development prospects of country.

   Related Questions in Macroeconomics

  • Q : Invesstment multiplier what can be the

    what can be the minimum value of investment multiplier?

    		•
  • Q : What is Bank rate Bank rate : This is

    Bank rate: This is the rate at which the central bank loans money to commercial bank.

    		•
  • Q : McConnell Brue Flynn 19e What

    What relationship does the MPC bear to the size of the multiplier

    		•
  • Q : Levels of income with no exceptions for

    A flat rate income tax for all levels of income along with no exceptions would be taken as a: (i) proportional tax. (ii) progressive tax. (iii) regressive tax. (iv) common tax. Can anybody suggest me the proper exp

    		•
  • Q : Drawback in illustration of

    Illustrations of macroeconomic aggregates would NOT consist of the: (1) tax responsibilities of a family. (2) unemployment rate. (3) level of national income. (4) supply of money. (5) rate of inflation. Can someone

    		•
  • Q : Full-employment and Under-employment

    Distinguish between full-employment equilibrium and Under-employment equilibrium. Whenever equality among AD and AS is at full employment level it is termed as full employment equilibrium. Although whenever equali

    		•
  • Q : Explain Product Market Equilibrium. To

    To begin with, let us recall our three-sector product-market equilibrium model given as C + I + G = C + S + TTo this three-sector model, we now add the foreign trade-the exports (X) and imports

    		•
  • Q : Perfectly substitutable outcome Firms

    Firms which serve customers who vision the firm’s output as perfectly substitutable for the outcomes of huge numbers of other firms confront: (i) Horizontal (that is, perfectly price elastic) demand curves. (ii) Predatory pricing from greater mo

    		•
  • Q : Principles of macro economics what are

    what are the four supply factors of economic growth

    		•
  • Q : Illustration of equal marginal advantage

    Can someone please help me in finding out the accurate answer from the following question. Shoppers who shift among checkout lanes until it emerges that all register lines are probable to be equally time-consuming are trying to verify to the law of: (i) Equivalent mar

    		•