Skip to ContentGo to accessibility pageKeyboard shortcuts menu
OpenStax Logo

7.

Based on the national saving and investment identity, what are the three ways the macroeconomy might react to greater government budget deficits?

8.

How would you expect larger budget deficits to affect private sector investment in physical capital? Why?

9.

Under what conditions will a larger budget deficit cause a trade deficit?

10.

What is the theory of Ricardian equivalence?

11.

What does the concept of rationality have to do with Ricardian equivalence?

12.

What are some of the ways fiscal policy might encourage economic growth?

13.

What are some fiscal policies for improving a society’s human capital?

14.

What are some fiscal policies for improving the technologies that the economy will have to draw upon in the future?

15.

Explain how cuts in funding for programs such as Head Start might affect the development of human capital in the United States.

Citation/Attribution

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Attribution information
  • If you are redistributing all or part of this book in a print format, then you must include on every physical page the following attribution:
    Access for free at https://openstax.org/books/principles-macroeconomics-3e/pages/1-introduction
  • If you are redistributing all or part of this book in a digital format, then you must include on every digital page view the following attribution:
    Access for free at https://openstax.org/books/principles-macroeconomics-3e/pages/1-introduction
Citation information

© Jul 18, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.