Chapter 17: Problem 12
Explain how cuts in funding for programs such as Head Start might affect the development of human capital in the United States.
Chapter 17: Problem 12
Explain how cuts in funding for programs such as Head Start might affect the development of human capital in the United States.
All the tools & learning materials you need for study success - in one app.
Get started for freeThe U.S. government has shut down a number of times in recent history. Explain how a government shutdown will affect the variables in the national investment and savings identity. Could the shutdown affect the government budget deficit?
What are some steps the government can take to encourage research and development?
Assume an economy has a budget surplus of \(1,000,\) private savings of \(4,000,\) and investment of 5,000 . a. Write out a national saving and investment identity for this economy. b. What will be the balance of trade in this economy? c. If the budget surplus changes to a budget deficit of \(1000,\) with private saving and investment unchanged, what is the new balance of trade in this economy?
How would you expect larger budget deficits to affect private sector investment in physical capital? Why?
Explain how a shift from a government budget deficit to a budget surplus might affect the exchange rate.
What do you think about this solution?
We value your feedback to improve our textbook solutions.