is exporting less to other countries than importing creating national debt since we have not paid for those goods and services. The nation’s debt comes at cost in form of interest paid on the borrowed money which could be used to grow our economy. Government generally raises taxes to pay for debt which results in smaller profit margin for business or higher price on the consumer. The government keeps economy stable through two policies fiscal and monetary policy that focus on control nation’s money supply. Fiscal policy is through tax rates for example recent administration cut tax rate on middle class and raised on higher income and businesses. Monetary policies are when the central bank decides to inject money into the economy to help bring growth back in 2008-2009. This help business borrow money at lower interest rate since the center bank has increased the supply of money in the
is exporting less to other countries than importing creating national debt since we have not paid for those goods and services. The nation’s debt comes at cost in form of interest paid on the borrowed money which could be used to grow our economy. Government generally raises taxes to pay for debt which results in smaller profit margin for business or higher price on the consumer. The government keeps economy stable through two policies fiscal and monetary policy that focus on control nation’s money supply. Fiscal policy is through tax rates for example recent administration cut tax rate on middle class and raised on higher income and businesses. Monetary policies are when the central bank decides to inject money into the economy to help bring growth back in 2008-2009. This help business borrow money at lower interest rate since the center bank has increased the supply of money in the