Does the Federal Debt Matter?

Does the Federal Debt Matter? -------------------------------------------------------------------------------- In very simple terms, is the current level of the federal debt that has been accumulated over the years a problem?

Time Lags of Monetary and Fiscal Policies

Considering the long time lags of monetary and fiscal policies, what if the economy needs a boost today, how would this be accomplished quickly and effectively?

Monetary & Fiscal Policies

How is it that monetary policy, such as open market operations, injects "new" money into the economy, where as fiscal policy such as tax incentives does not inject "new" money into the economy? What is the difference? Could you explain.

Monetary policy

Please distinguish between the prime rate, the discount rate, and the federal fund rate.

Exchange Rate

I understand if the US dollar is weak, then the exchange rate decreases. This situation would entice producers in other countries to export their goods into the US because they would benefit from the low exchange rate of their currency and make greater profits. How does the lower exchange rate affect domestic exporters? Inversel ...continues

Interest rates and inflation

Low interest rates cause the US dollar to depreciate. Due to the weak dollar, prices will increase. Increased prices could lead to inflation over time?

Monetary Policy

I understand that monetary policy is an important tool of the federal reserve to regulate the interest rates and money supply which impacts the currency movement. It is also my understanding that the economy can adjust itself. Is it the fact that the economic adjustment takes too long? There must be a reason why the US does not ...continues

Monetary Policy vs. Fiscal Policy

I know that the use of fiscal policy can increase the possiblity of inflation. Does the use of fiscal policy also devalue the dollar like monetary policy?

Built-In Stabilizers of Fiscal Policy

I understand that fiscal policy has built-in stabilizers and I understand how all of this occurs, but I am uncertain if this is a positive or negative characteristic of fiscal policy. How do these stabilizers affect expansionary fiscal policy?

Concepts and Problems in Macroeconomics

Use the following data to answer questions 1-3 (be sure to provide all calculations). Quantities Produced Prices CDs Tennis Racquets CDs Tennis Racquets Year 2004 100 200 20 110 Year 2005 120 210 22 120 1. Calculate real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow? 2. Calculat ...continues