On the importance of savings and investment, identify a government policy that you believe either promotes or stifles economic growth and defend your response.
From an economic growth and prosperity level, we have to look at the role of the financial system. We know that high inflation means higher interest rates, which lead to less purchasing power and more investing (investors like higher interest rates!). However, lower interest rates spark more lending for business growth, home and auto purchases, etc. How has economic policy affected the lending institutions today? If inflation rises how will it affect the economic recovery in the U.S.?
Today we see a lot of activity within the international trade arena as the U.S. deficit has soared to a record high. Trade is designed to create bigger market opportunities, so why is the balance of trade so out of balance for the U.S.?
State what you think will cause market fluctuations over the next few years as the economy struggles to recover. What areas of the economy should be closely watched as indicators of future activity?
Welcome back. PDtax here.
Can you tell me when you need this by? Also, any length requirement to the paper?
No more than 200 words. These are discussion questions. Monday or Tuesday if possible please.