Additional deficit financed fiscal stimulus is good idea

Assignment Help Business Economics

Reference no: EM131169272

According to the President's economic advisors, the US could have borrowed and spent more money on fiscal stimulus without hurting the economy. And, after all, our annual deficits have declined somewhat. Considering the world your children will inheret, do you think additional deficit financed fiscal stimulus is a good idea?

Reference no: EM131169272

Questions Cloud

Drugs are marketed to consumers in advertisements : The New York Times reported that the FDA was holding a hearing to scrutinize the way prescription drugs are marketed to consumers in advertisements. Critics, like then–Senator John Edwards, claimed that's misleading for an ad to show a woman running ..

Then by how much does the money supply change : The banking system currently has $20 billion of reserves, none of which are excess. People hold only deposits and no currency and the reserve requirement is 10%. If the Fed raises the reserve requirement to 16% and at the same time buys $10 billion o..

Events would affect the supply or demand in each market : Using supply-and-demand diagrams explain how the following events would affect the supply or demand in each market (draw the original demand and supply and in the same graph draw the NEW demand or supply-showing your shifts) and how the quantity and ..

Determined randomly and exogenously in each period : Consider an economy in which consumers have identical preference and income.The income is determined randomly and exogenously in each period. Consumersprefer smooth consumption over time. Production does not involve capital so thatthere is no investm..

Additional deficit financed fiscal stimulus is good idea : According to the President's economic advisors, the US could have borrowed and spent more money on fiscal stimulus without hurting the economy. And, after all, our annual deficits have declined somewhat. Considering the world your children will inher..

About the enrichment tax : One plan to raise money for Texas schools involves an “enrichment tax” that could collect $56 for every student in a certain school district. If there are 50,000 students in the district and the cash flow begins 2 years from now, what is the present ..

Developed revolutionary new personal computer : You are the international manager of a US business that has just developed a revolutionary new personal computer that can perform the same functions as existing PCs but costs only half as much to manufacture. Several patents protect the unique design..

Consumer preferences over two goods are represented : A consumer's preferences over two goods are represented by: U(x1, x2) = (x1^2)(x2^3)/100 The prices are P1 and P2, and an amount of money E can be spent on these goods. Show that the two uncompensated demand functions are: x1 = 2E/5p1 and x2 = 3E/5p2

The investment demand curve is downward sloping : The investment demand curve is downward sloping. The money demand curve can shift due to buying bonds. Monetary policy can affect AD. The money supply curve is downward sloping. Banks determine the supply of money.

User Account

All Pages