The Economy And Fiscal And Monetary Policy#038;nbspEssay

FIND A SOLUTION AT Academic Writers Bay

PARAGRAPH FROM Essay :

An Economic Simulation: Econoland

Q7. What government expenditure decisions did you make during different phases of the simulation? How do changes in government spending affect the consumption level?

During the first and second years of the simulation, I kept corporate and individual income tax rates too high to sustain economic growth, and also kept the interest rate too high at 3% and then raised it to 7%, which discouraged borrowing for new investments. When the world economy slowed down, this further discouraged consumption. Lowering the interest rate by the third year was helpful, even with raising income and corporate taxes. Reinvesting the gains from such taxes into government infrastructure can be very helpful to further encourage spending by consumers and businesses. By the fourth year, despite the instability in the world economy, the lack of a budget surplus, government reinvestment in the economy, and keeping the interest rate stable resulted in continued growth.

But by the fifth year, by keeping government spending constant in a world where inflation is a significant factor, combined with a budget surplus, growth had slowed. This should have been a sign for a need for higher levels of government spending. Inflation means that the purchasing power of the same…has been reduced. By year seven, despite the increased confidence in the global economy as a whole, the fact that government expenditures were not increased has resulted in slow growth within the country. The simulation underlines the fact that there must be a balance between attempting to spend within the governments allocated budget and the need to stimulate growth.

In retrospect, more government spending would have been helpful. In the long run, by stimulating consumption, job growth, and business growth, this can result in more tax revenue and still ensure solvency. Changes in government spending can have a significant, positive impact on improving…

• WE OFFER THE BEST CUSTOM PAPER WRITING SERVICES. WE HAVE DONE THIS QUESTION BEFORE, WE CAN ALSO DO IT FOR YOU.
• Assignment status: Already Solved By Our Experts
• (USA, AUS, UK ; CA PhD. Writers)
• CLICK HERE TO GET A PROFESSIONAL WRITER TO WORK ON THIS PAPER AND OTHER SIMILAR PAPERS, GET A NON PLAGIARIZED PAPER FROM OUR EXPERTS

QUALITY: ORIGINAL PAPER – NO PLAGIARISM - CUSTOM PAPER

Why Choose Us?

How It Works

• Click on the “Place Your Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
• Fill in your paper’s requirements in the "PAPER DETAILS" section.
• Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
• Click “CREATE ACCOUNT ; SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
• From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.

About AcademicWritersBay.com

AcademicWritersBay.comnbsp;is an easy-to-use and reliable service that is ready to assist you with your papers 24/7/ 365days a year. 99% of our customers are happy with their papers. Our team is efficient and will always tackle your essay needs comprehensively assuring you of excellent results. Feel free to ask them anything concerning your essay demands or Order.

AcademicWritersBay.com is a private company that offers academic support and assistance to students at all levels. Our mission is to provide proficient andnbsp;high quality academic servicesnbsp;to our highly esteemed clients. AcademicWritersBay.com is equipped with competent andnbsp;proficient writersnbsp;to tackle all types of your academic needs, and provide you with excellent results. Most of our writers are holders ofnbsp;master's degreesnbsp;ornbsp;PhDs, which is an surety of excellent results to our clients. We provide assistance to students all over the world.
We provide high quality term papers, research papers, essays, proposals, theses and many others. Atnbsp;AcademicWritersBay.com, you can be sure ofnbsp;excellent gradesnbsp;in your assignments and final exams.