AGEC 217 - AGEC 217 Dr. Robert W. Taylor Final: Friday,...

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1 AGEC 217 Dr. Robert W. Taylor Final: Friday, Dec. 4 in class. If you need an alternate final, email me a clear explanation by November 13. Minimum score required to get: Grade Score A+ 93 A9 0 A- 87 B+ 83 B8 0 B- 77 C+ 73 C6 5 C- 62 D+ 58 D5 5 D- 52 F0 Extra Credit: Change any quiz score by doing A. or B. below and you may do one of each. A. Interview a businessman and submit a half-page report in your words of how he says macroeconomic factors (government regulations and reporting requirements adding to costs, inflation, unemployment, interest rates, etc.) have affected his business this year. To get the grade changed, report must be typed, and you must have your name, seat number, quiz # you want changed, and the name and contact information (phone/email) for the interviewee clearly written at the top of the first page. Date submitted Quiz grade changed to: Nov 16 or before 100 Nov 23 90 Dec 2 60 B. Bring a 7 – 12 grade student to class, now through Wed. of dead week . The guest must: *Meet Dr. Taylor before class *Complete an information form *Be attentive throughout class To get quiz grade changed to 100, host must: *Take responsibility for seating and behavior of guest. *Put his own name, seat number and quiz number to change to 100 on top of information card. *Submit card to Taylor US National Debt Fed. government spending more than it collects in taxes over time. Why does US have a national debt? Debt—all time total Deficit—annual shortfall US government gets money from: Taxes Borrowing
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2 Govt. cannot just print money Why is debt so big? Wars Why is debt so big? "Wise" Expansionary Fiscal Policy Why is debt so big? Federal Fiscal Irresponsibility Borrowing from Americans and foreigners to allow government to spend beyond tax receipts. Debt owed public = $7.5 trillion Social Security, etc. = holdings: $4.4 tr.
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3 Allows expansionary fiscal policy Allows emergency action w/o taxation first Provides a safe opportunity for savers What are the advantages of having a debt? What are the disadvantages of having a debt? There is no plan to pay off the debt and it is unlikely it ever will be paid off—seems irresponsible! Tax burden discourages our most productive people—High debt; high interest cost; high taxes; too little left for worker, so they don’t work! $1 tax increases reduces GDP $2. Crowding out business investment US government competes with business for saver's funds, bidding interest rates up, reducing Investment and growth Disadvantages of having a debt: OPINIONS JOURNAL AND COURIER Mon, Feb 23, 2009 A9 Does the National Debt shift a burden to future generations? Depends on who debt is owed to: Up to 1984 US debt owed internally, to Americans After 1986 US debt owed externally (foreigners) 30%
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4 Does the National Debt shift a burden to future generations? NO--Internally held debt: WWII Deficit spending; Economy at capacity; Internally borrowed; Production shifted from cars to tanks 1. Total production unchanged Extra tanks came from fewer cars--consumers then bore the burden of the war at the time 2. Long-term interest obligations mean a transfer from
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This note was uploaded on 02/19/2011 for the course AGEC 217 taught by Professor Deboer during the Fall '08 term at Purdue University-West Lafayette.

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AGEC 217 - AGEC 217 Dr. Robert W. Taylor Final: Friday,...

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