Six Debates Over Macroeconomic Policy
#6 Six Debates Over Macroeconomic Policy ( Professor follow up)
Thank you for your response. What is the current amount of the federal government’s public debt? Please find a source or sources to substantiate your answer. Can this debt ever be paid or must the U.S. government always carry a large debt to finance its public spending programs?
#7 Stabilization of the economy (Professor)
Thank you for your response. Does the central bank, i.e. the U.S. Federal Reserve, control interest rates entirely or are those rates determined by other factors or additional parties? Please find a source or sources to support your response. Do lower interest rates always lead to more borrowing by consumers and/or businesses? Please explain.
#8 Policy Decisions (Student Post)
Time lags can make policy decisions more difficult. It is estimated interest rate changes take up to 18 months to have the full effect. This means monetary policy needs to try and predict the state of the economy for up to 18 months ahead, but this can be difficult in practice.
Price of elasticity is one of the effects of lags, in the mid-1970s; the price of petrol tripled and demand was initially very priced inelastic. People with petrol cars still needed to get to work. However, over time, consumers and producers respond to this change in price by developing more fuel-efficient cars or even buying an electric car. Overtime, demand has become more price elastic for petrol. In the short-term a higher price of oil only causes a small fall in demand. However, over time, demand becomes more price elastic and there is a bigger fall in demand
………………..Answer preview………………………
The United States federal government debt as of 15th May, 2018 amounts to 21.1 trillion dollars. This debt may never be paid completely. The government can come up with strategies to ensure the debt is settled. There are three ways in which the federal government can establish to ensure the huge debt is paid off over time…………………………
APA
420 words
Get instant access to the full solution from yourhomeworksolutions by clicking the purchase button below