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  • ECU-07412 Class Assignment II

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    Omari Mauga
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    The document contains an assignment for an Intermediate Macroeconomics class asking students to: 1) Briefly explain economic concepts including inside lag, outside lag, budget deficit, crowding out effect, and capital budgeting. 2) Describe problems measuring budget deficits and how a debt-financed tax cut affects public, private, and national savings under the traditional view. 3) Explain the Ricardian view of how a debt-financed tax cut affects savings and argue against the Ricardian view. 4) Give reasons a budget deficit may be good and how government debt affects a nation's role in the world economy.

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    Intermediate Macroeconomics

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    The document contains an assignment for an Intermediate Macroeconomics class asking students to: 1) Briefly explain economic concepts including inside lag, outside lag, budget deficit, crowding out effect, and capital budgeting. 2) Describe problems measuring budget deficits and how a debt-financed tax cut affects public, private, and national savings under the traditional view. 3) Explain the Ricardian view of how a debt-financed tax cut affects savings and argue against the Ricardian view. 4) Give reasons a budget deficit may be good and how government debt affects a nation's role in the world economy.

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    3 views1 page

    ECU-07412 Class Assignment II

    Uploaded by

    Omari Mauga
    The document contains an assignment for an Intermediate Macroeconomics class asking students to: 1) Briefly explain economic concepts including inside lag, outside lag, budget deficit, crowding out effect, and capital budgeting. 2) Describe problems measuring budget deficits and how a debt-financed tax cut affects public, private, and national savings under the traditional view. 3) Explain the Ricardian view of how a debt-financed tax cut affects savings and argue against the Ricardian view. 4) Give reasons a budget deficit may be good and how government debt affects a nation's role in the world economy.

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    © All Rights Reserved
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    THE INSTITUTE OF FINANCE MANAGEMENT

    DEPARTMENT OF ECONOMICS AND TAX MANAGEMENT


    INTERMEDIATE MACROECONOMICS (ECU-07412)
    SECOND YEAR
    ACADEMIC YEAR 2022/2023

    CLASS ASSIGNMENT

    1. Shortly explain the following concepts,


    a) Inside lag
    b) Outside lag
    c) Budget deficit
    d) Crowding out effect
    e) Capital budgeting

    2.
    a) Describe four problems affecting measurement of the government budget deficit.
    b) According to the traditional view of government debt, how does a debt-financed tax
    cut affect public saving, private saving, and national saving?

    3.
    a) According to the Ricardian view of government debt, how does a debt-financed tax
    cut affect public saving, private saving, and national saving?
    b) Shortly explain the arguments against the Ricardian view on the government Debt

    4.
    a) Give three reasons why a budget deficit might be a good policy choice
    b) Explain how Government debt may affect a nation’s role in the world economy.

    Dr. S, SHEKIONDO Mr. PASCAL, J

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