University:
Yeshiva University
Course:
1501 | Public Finance
Academic year:

2019
Views:

261

Pages:

1
Author:

boltakvf

PART A 1. Fiscal policy is the use of government spending and taxation to essentially “control” the rate at which the economy goes. The tools of fiscal policy are as previously mentioned: government spending and taxation, and its goal is to influence the country’s economy to the way that the government wants it to be. 2. Congress should create a law that mandates a balanced federal because as debt rises, citizens will start to make fewer investments in the U.S. government because they fear they will not get that money back. PART B 1. The fiscal policy described is an extension of a temporary pause on federal student loan payments issued by the president during the COVID-19 pandemic. At the time of this article, the policy was under debate. 2. This policy could promote economic growth because people with student loan debt would not have to worry about making their next student loan payment and can spend money on other things, like shopping, more comfortably. 3. If approved, the extended pause would most likely contribute to a budget deficit and lead to an increase in national debt because the government is not getting that money back from loaning it out but is still spending money on other things. 4. I approve of this fiscal policy because it alleviated the worries of many students and families who were struggling to get by during the pandemic. One tradeoff for this choice would be the increase of national debt.