Pls help me with this questions! 1500 pts for an accurate answer..thank you in a
ID: 1094839 • Letter: P
Question
Pls help me with this questions! 1500 pts for an accurate answer..thank you in advance!!
1. The U.S. economy is slowly recovering from the 2007-2009 recession and economists are concerned that the economy might take years to fully recover from the "great recession". If you are the President of the U.S., what actions would you take to help the economy recover more quickly and reduce unemployment?
2. What are three ways the federal government can pay for an increase in governement spending? What do you think is the best way to pay and why?
3. What is the definition of the federal deficit? What is the difference between the federal deficit and the federal debt in your own words?
Explanation / Answer
1. The U.S. economy is slowly recovering from the 2007-2009 recession and economists are concerned that the economy might take years to fully recover from the "great recession". If you are the President of the U.S., what actions would you take to help the economy recover more quickly and reduce unemployment?
ANSWER:
I would recommend deficit financing like what is being done in japan by the Abe government. It would stimulate the economy , create work and employment. And also faster the rate of growth. It would also help reduce and correct the structural stagnation. Public spending is the way to go for.
2. What are three ways the federal government can pay for an increase in governement spending? What do you think is the best way to pay and why?
1. Issue bonds
2. Sell new government securities
3. By imposing a new tax.
4. Revenue from economic activities
The best form is revenue earned and because it is not quite adequate governments resort to issuing new binds and promissory notes/treasury bills and notes to finance th increased government spending. Issuing bonds and treasury notes are cheaper when compared to other alternatives.
3. What is the definition of the federal deficit? What is the difference between the federal deficit and the federal debt in your own words?
Federal deficit happens when the federal governments total expenditure exceeds federal revenue. Whenever this happens the federal government finances the deficit by taking loans and issuing debts. So federal debts are in fact government borrowings from various sources.