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Question: One proposal to contain the deficits is a balanced budget amendment to the Constitution, that would require the government to maintain a balanced budget every year.
a Explain why if the economy goes into a downturn, this would either force the government to raise taxes or reduce expenditures.
b What would be the consequences of raising taxes or reducing expenditures under these circumstances?
c How might you design a balanced budget amendment that would not force the government to cut back expenditures or raise taxes in an economic downturn?
d Explain why if interest rates are increased to dampen the economy, the balanced budget amendment might force the government to cut back other expenditures (or raise taxes). More generally, describe the interaction between monetary and fiscal policy under a balanced budget amendment.
Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.
You will also develop your request for proposal (RFP) based on Discussion Board. Prepare a table of the evaluation criteria that you will use to select your top vendor.
Consider the problem of regulating acid rain in the eastern US. Assume emissions are generated in the Midwest and the Northeast but acid rain damage only occurs in the Northeast. One million tons of emissions in the Midwest results in 1 microgra..
A machine tool, which has been used in a plant for 10 years, is being considered for replacement. It cost $10,000 and was depreciated by MACRS depreciation using a 5-year recovery period. An equipment dealer indicates that the machine has no resale v..
Equilibration is the process of moving between two equilibrium points as a result of some change in supply or demand. Understanding how market equilibrium is sought following such a change is essential for business managers.
assume your research staff used regression analysis to estimate the industry demand curve for product x.qx 10000 - 100
A McCurdy Inc has issued a 10 year bonds with a face value of $500000 in $1000 units. Interest of 8% annually is paid monthly. If you as an investor desire to have a 12% nominal interest (compounded monthly) on $10,000 worth of bonds, what would t..
Suppose that society decided to reduce consumption and increase investment. How would this change affect economic growth? What groups in society would benefit from this change? What group might be hurt?
Explain and illustrate graphically the effect of the following on the monetary base and the level of reserves. Use the T-accounts to illustrate and explain your answer. Central bank purchases $30 million of government securities for Chase Bank.
Where is the starting point of this poverty in Fresno? What can we as citizens do about this? What Government Can Do: Dealing with Poverty and Inequality?
What are the roles of the corrections organization, the probation officer, and the offender in the outcome of the probationary period? When can we determine the probationary period be deemed a success?
A large company must build a bridge to have access to land for expansion of its manufacturing plant. The bridge could be fabricated of normal steel for an initial cost of $30,000 and should last 15 years. Maintenance will cost $1,000/year.
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