Macroeconomics: Fiscal Policy
Debt Trap (6/18/2010)
Debt/income ratio will rise as long as the deficit exceeds debt times the income growth rate.
Debt/income ratio will rise as long as the deficit exceeds debt times the income growth rate.
Domestic Content (5/13/2010)
Economic stimulus might end up stimulating foreign economies more than the domestic economy when the US is so dependent on imports.
Economic stimulus might end up stimulating foreign economies more than the domestic economy when the US is so dependent on imports.
Expenditure Multiplier (12/14/2009)
Total expenditure could be a multiple of the injected stimulus if most of the additional income is spent.
Total expenditure could be a multiple of the injected stimulus if most of the additional income is spent.
Front Loading (5/12/2010)
Cash for clunkers and home-buyer tax credit provided huge subsidies for each incremental sale but failed to sustain the car and housing markets.
Cash for clunkers and home-buyer tax credit provided huge subsidies for each incremental sale but failed to sustain the car and housing markets.
Liquidity Trap (6/17/2010)
Even with short-term interest rates close to zero, the US economy has failed to respond to cheap money because of anemic bank lending.
Even with short-term interest rates close to zero, the US economy has failed to respond to cheap money because of anemic bank lending.
