1.4: Components of Economic Policy
Read this section to learn about revenues and expenses in the federal budget. In the year of an election, the candidates promise to reduce government spending. Usually, this does not happen. The yearly deficit continues to add to the national debt. Some U.S. citizens think that government spending helps the economy grow. Others believe that government spending comes out of the hands of consumers and business owners, thereby slowing growth. After you read, write a paragraph that expresses your thoughts on this argument.
Read this section to learn about budget surpluses. It is pretty unlikely that the United States will see a budget surplus in the near future. This situation is present when the tax revenues collected are greater than the expenses of the United States government. Complete the exercise at the end of the section.
Read this page to learn about the monetary policy. Monetary policy manages the money supply under the control of the Federal Reserve Board.
Read this article to learn more about the Federal Reserve Bank of New York.