If we no longer use the federal deficit and debt as an excuse not to pass much needed policies and develop new governmental programs, what challenges facing the world and the US could we tackle
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- If the national debt increases, is it true that we need not worry about the debt as long as the country is able to make payments on the debt? State why or why not. Explain your answer clearly.1. In order to reduce its current-account deficit, the United States would NOT do which of the following? a . raise national product relative to national spending b. decrease savings relative to domestic investment c . increase savings relative to domestic investment d . reduce the federal budget deficitWhy would government usually default first to monetary policy for stabilization before using fiscal policy?
- Theory provides that without taxes, a government would be paralyzed for lack of power to activate and operate it, resulting its destruction ?How do you relate development of global value chains in global economy and the causes of 2008 financial crisis ? Did government responses sufficient to prevent another crisis? If not, what do you suggest as plausible measures?How can a federal budget deficit increase market equilibrium interest rates and reduce private investment and future economic growth?
- Give two examples of where the government involvement is excessive in a free market system? And two examples of where the government is not involved enough?The legacy of the New Deal was that now Americans believed that the Federal Government was responsible for the economy? True or falseOne of the main arguments against using Fiscal Policy is the crowding out effect. Suppose the government uses government purchases to stimulate the economy. a) Explain the crowding out effect in detail using a graph for the bond market, the money market, the foreign exchange market, and the AD SRAS LRAS model. b). Explain quantitative easing? c) If the Fed’s current policy is quantitative easing, do you think that there is a danger of the government’s current fiscal policy being crowded out? Why or Why not? Explanation required for credit.
- Suppose expenses for Medicare and Medicaid are rising rapidly. Which strategy could the federal government use to solve this situation? Make cuts to defense and education spending, and then increase income and payroll tax rates to reduce the effect of increasing expenses in the federal government. Delay payments for the interest on the national debt and increase tax rates for payroll and corporate income taxes to raise funds for Medicare and Medicaid. Increase corporate and individual income tax rates to raise revenue, and then eliminate payments to state and local governments to cut other costs in the federal government. Increase payouts for entitlements and decrease income and payroll taxes so that consumers are provided with more money to pay for increased medical costs.Q1) can a country have a good finanical system having at the same time with the weak fiscal structure? Discuss in detailWhen a government lowers taxes it is employing ________. A) fiscal policy B) monetary policy C) domestic policy D) the law of one price