Answer to Question #61786 in Macroeconomics for Jessica

Question #61786
Assume that a country has a growing budget deficit, carries a very large debt, is in a period of high unemployment with interest rates almost at zero, and annual inflation and GDP growth of about 2%

Make sure you include both the positive and negative effects of your actions, and include the trade-offs or opportunity costs

Discuss the dangers of a high debt to GDP ratio and a growing budget deficit and how this affects your policy recommendations
Expert's answer
The goal is to stimulate national economy with cheap money. On the other hand, the government will be forced to cover budget deficit. The instrument of the policy is monetary policy.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

New on Blog