What''s wrong with raising taxes in a recession

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1. (a) Identify and describe four causes (i.e., types of unemployment).

(b) Are some workers more likely than others to be laid off and have a harder time finding another satisfactory job? Explain.

2. (a) Identify three economic variables that create differences in market interest rates on assets and/or liabilities.

(b) For most companies, are business loan interest rates lower than the interest rates on personal loans for most U.S. households. Explain

(c) Is the interest rate paid by the U.S. government on its short-term Treasury bills (T-bills) usually less than a comparable commercial paper loan to most corporations in the U.S.? Explain.

3. (a) Recommend some U.S. fiscal policy change in business taxes or government spending that would reduce the U.S. government's budget deficit and also help improve the U.S. economy? Explain.

(b) Would reducing the federal budget deficit also reduce the national debt? Explain.

(c) What's wrong with raising taxes in a recession?

Reference no: EM13854158

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