--%>
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 : Weighed marginal cost and marginal

    Cite examples of recent decisions that you made in which you, at least implicitly, weighed marginal cost and marginal benefit?

    		•
  • Q : FX rates In June 2005, a Big Mac sold

    In June 2005, a Big Mac sold for 6,000 pesos in Colombia and $3.00 in the United States. The exchange rate in June 2005 was 2,300 pesos per dollar. So, on Big Mac purchasing power parity grounds the Colombian peso was

    		•
  • Q : Economic Economic systems differ

    Economic systems differ according to which two main characteristics?

    		•
  • Q : Calculating Trade balance Suppose the

    Suppose the value of exports of goods of a country is Rs. 1,000 crores and the value of imports of goods is Rs. 1,200 crores, what will be the trade balance (or balance of trade)?

    		•
  • Q : Full-employment Define the "

    Define the "full-employment" or "natural" rate of unemployment and give its approximate percentage rate as economists currently define it.

    		•
  • Q : Taxing imports-whats the problem ‘Must

    ‘Must a country which is less proficient at generating all goods use import controls to decrease imports from additional countries?’

    		•
  • Q : Monetary policy-how is it decided The

    The practice explores how monetary policy influences the economy and the type of factors which are significant in finding out the Monetary Policy Committee’s decision.

    		•
  • Q : Would inflation targeting be a good

    Question: Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment?

    Q : Describe open market operations

    Describe open market operations? What is its consequence on availability of credit? Answer: Open market operations signify the purchase and sale of government secur

    		•
  • Q : Fiscal and monetary policies in

    Explain the impact of changes in fiscal and monetary policies in curtailing inflation?

    		•