Two-page paper covering the following: Consequences associated with government deficits. Students will determine the degree of government involvement in economic activity including fiscal and monetary policies.
Description: Written paper on the problems associated with increased deficits and debt.
Further Detailed Instructions:
Define Problem – Clearly define the problem at hand through the construction of an appropriate problem statement.
Identify Strategies – Identify reasonable and/or appropriate strategies that may be used to solve the given problem.
Propose Solutions/Hypotheses – Proposes hypotheses about what, or solutions that may result from, applying identified strategies.
Implement Solution – Apply the strategy that best addresses the problem at hand based on demonstrated consideration of multiple possible outcomes.
Evaluate Outcomes -Examine the consequences of applying the solution, checks for accuracy, and reflects on other possible outcomes based on the stated results.
Apply information from the course relating to Monetary and Fiscal Policy; especially, course material presented in the final modules – including illustrations. Use the following, in addition to your own observations and experiences to answer the following questions while keeping mind the instructions:
What is the connection between deficits and debt?
What are positives and negatives associated with federal spending and the debt?
What impact does monetary policy and fiscal policy have on the federal debt?
How could we reduce the debt, while maintaining spending levels?
How does the federal debt affect individual taxpayers?
Why does the increasing federal limit the ability of the consumer to spend? Think of this in terms of income.
