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04.05 Uncle Sam's Toolbox

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Christine amparado

on 14 August 2014

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Transcript of 04.05 Uncle Sam's Toolbox

Fiscal policy
The Differences
The difference between fiscal policy and monetary policy is that fiscal policy are controlled by the president and congress and they deal with taxes and government were spending. On the other hand, monetary policy is focused more on buying/selling government securities to control money supply.
Scenario #1
Scenario #2
* As we create a budget deficit because the government is spending more money than what we earned.
Scenario #3
The nation is currently experiencing a period of rising prices. Inflation as we make our consumer goods increasingly difficult to afford as wages have remained constant.
04.05 Uncle Sam's Toolbox
Assignment
Fiscal policy has to deal with government earning and spending money. The tools that the government uses are taxing and spending. The goals of fiscal policy to make businesses produce more by creating demands in the economy.

I think they should create a law mandating so that we can save up for an extra budget for our debt not only for our debt and also we can manage to see the difference and the balance of our federal budget.
The government is currently spending three billion, one hundred million on programs and brings three billion, five hundred million through the taxation.
* This is a budget surplus because although the government is spending money, it is bringing in more money through taxation than it is spending.
* As a member of the congress, I think it would make it increase on taxes, I also think that i would make a decrease amount on what the government spends.
* I thinks that the benefits would be the government could make more money through taxation but it would also cause some problems to the economic growth cause people who pay more, prices can range all over the place and people might become unemployed.
The government is currently spending three billion, seven hundred million on programs and brings in two billion, nine hundred million through taxation. In additionally, the nation has experienced a period of rising unemployment.2
* As a member of the congress, I have to say the best way is to fix this issue would be to decrease the spending and hopefully to increase the taxes and to gain more money.
* In my opinion, the benefits of the government would be making more money through taxation but it might cause problems to the economic growths.
* I don't think that the unemployment rate could change , if anything it would get worse.
*
I would make a decrease in taxes and increase on government spending.
* The impact in my decision is that the economy would grow better, and prices is more reasonable, and unemployment could get better or remain the same.
* My suggested idea would be would be expansionary because it could cause a growth in economy
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