Purchase Solution

What possible macroeconomic arguments might George Bush use to defend his tax cuts at this time?

Not what you're looking for?

Ask Custom Question

Please read the attached and answer the follows.

A) What possible macroeconomic arguments might George Bush use to defend his tax cuts at this time.

B) Why do you think the IMF is concerned that these tax cuts may be bad economic policy, and not just for the US, but for the world economy?

C) What would happen to the growth rate of the money supply if foreigners lost confidence in the US dollar as a result of passage of Bush's tax cut package and the Fed was trying nonetheless to maintain its current low federal funds rate target? Explain briefly.

Attachments
Purchase this Solution
Solution Summary

This solution briefly discusses the reasoning behind the economic theory in these cases in 187 words.

Solution Preview

A) Tax cuts spur consumption, which fuels economic growth.

B) Tax cuts without lowered government spending creates huge budget deficits, which must be financed with more government bonds at higher interest rates. This would also make the US more indebted to foreign bond ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Bush's tax cut package

    A)What possible macroeconomic arguments might George Bush use to defend his tax cuts at this time.

  • Making temporary tax cuts permanent

    What arguments/assumptions could be used to justify rolling back those tax cuts (increasing taxes) at this time? There are both pros and cons of tax cuts. Tax cuts increase the disposable income of a household.

  • Rewrite each sentence to eliminate unclear pronoun refrences

    When Kerry challenged the numbers behind bush's proposed tax cuts, bush accused Kerry of being "wishy-washy." This stuck throughout the campaign. 6.

  • President Bush's second State of the Union Address; critical thinking skills in politics

    In what we hope will be his last State of the Union Address on Jan. 20, George W. Bush set the tone for his 2004 presidential campaign. Bush spoke for almost an hour, casting a trademark smirk at the country.

  • Fiscal and monetary policy

    Dictionary www.econlib.org/library/Enc/FiscalPolicy.html: This answer offers cogent arguments relating to Fiscal and monetary policy

  • IMF successes and failures

    156082 What are examples of IMF successes and failures? What are examples of IMF successes and failure? The IMF was established by the United Nations in 1944 to provide loans to distressed countries at a relatively low interest rate.

  • Limitations and Growth from 1974 to the Present Matrix

    , Supply-Side Economics, Deregulation, The Federal Reserve Board, The Energy Glut, National Debt, The 1981 Tax Cuts, Spending Cuts, Military Spending, Technology B1: Explain what factors contributed to the economic resurgence of the 1980s.

  • The Federal Reserve system

    What we are looking at is changes in tax laws and government expenditure. This is FISCAL POLICY. e. The Federal Reserve system buys Treasury securities from banks in order to reduce bank holdings of securities and increase their cash balances.

  • The Influence of George W. Bush on Texans

    First off, as you formulate a title, a cool idea might be "Team Texas: The Legacy of President George W. Bush Among Texans."

View More Related Solutions