--%>
Assignment Help - homework help

The failure of the Supercommittee

Question:

Some commentators have argued that the failure of the "Supercommittee" is good thing for the economy?  Do you argree?

Answer:

The Super committee failure means that there will not be premature spending cuts. The economy is still in the state of uncertainty and the spending cuts may further dent the recovery prospects. Furthermore, a scope for raising the taxes moderately is there. A tax increase is definitely something the government can look forward to reduce the fiscal deficit rather than reducing the expenditure. So the main is that the economy does not seem to be in a state to take a risk of reduced spending and high taxes, and this is what comes out of the failure of the Super Committee.

 

 

   Related Questions in Macroeconomics

  • Q : Explain Product Market Equilibrium. To

    To begin with, let us recall our three-sector product-market equilibrium model given as C + I + G = C + S + TTo this three-sector model, we now add the foreign trade-the exports (X) and imports

    		•
  • Q : Objective of government Budget Give

    Give some objective of government Budget. Answer: The objectives which are pursued by government via the budget are as follows: A) To attain economic growth. B) To decrease in equalities in income and wealth.

    		•
  • Q : Why government taken as capital receipt

    Why the borrowings by Government are taken as capital receipts?

    		•
  • Q : The Fed can control the Fed funds rate

    Question: Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have o

    		•
  • Q : Explain Shut Down Price Explain the

    Explain the term Shut Down Price? Illustrate it.

    		•
  • Q : Market experiencing a rise in demand

    When equilibrium moves from point a to point b in the figure shown below, the only market experiencing a rise in demand is illustrated in: (1) Panel A. (2) Panel B. (3) Panel C. (4) Panel D.

    Q : How banking evolved into the

    Give a short history of how banking evolved into the sophisticated operation. Start first with the Goldsmith and sum up with the Banking system which we experience nowadays.

    		•
  • Q : How Bank rates control the credit How

    How Bank rates control the credit? Answer: Bank rate is the rate of interest at which the Central bank lends to Commercial banks. By increasing the bank rate centra

    		•
  • Q : When price of demand curve modified

    Whenever the price of a good all along a demand curve is modified since of a change in supply, the substitution effect is the modification in purchases of a good which result from a change merely in: (1) The associative price of that good. (2) Consumer tastes and prio

    		•
  • Q : Fiscal and Monetary policies How can

    How can governments seek to control their national economies through fiscal and monetary policies?

    		•