Sh 9 Notes
stabilty -congress + He presideit confrol federal budget& Hhereoce He pachs thaf Cconducf frscal polTi swrsoa Xuonp hamod je sif heuersocd x3 *
-Fedeal govcan cecue Fax colechons->'nc&eases 8emand fY goo&s &serute8
to spend/save if corparofe toxesoecut H owners hae more neme 8 seendng mereases
orotk wnth puewp yyeha Bbe sscanus Aggicgote demaro -tota1 denan&m'fox goodsi
foreigners
*none of thS Changcs He MoNey supply
Issues w/ GxOnsionary Fiscal Polcy
Sandng oc ncreased? thhicho fiscal policy shau& be appled?
Drowbocks of ExoonsionaryFiscol Polity TIt will Cmse mfahon Z)cortoin Mdusktes Will be fovared
Reosons if moy be netfechve: f0nds fou' gams 2q pina7fn7 xef H(v Sq2mpasd u6raw v9+U2ds 2q p7no7 fn7 xcf F (2
2 R R
t manetary
used Mrne thak Bscol mpc<Margimal Propensi to Coasume ha mudh is spent 3 -20 m.hol sRn&mg maease gerrofescpples offorter fo0 pej hjenjvan3 feu+ Xug u>d e
Spendma Molhylier: -MPO Spendml mulhplicr of- UsA 2rovo& mo i,i eveninayM juPcO s aboufn,3
x Fi3cal policy fo rem&ymflahon 7 mcqezse taxes ar b4ods AoB.23ezJ700 y-some se- of Iissues cs expsnsonay Drawbocks of (onkachonay Fiscol Rolcyi 1) hilL case vaempbyment Z)cer+m in&usfues Wil be horme& ynore thaaoHes? 3) impec+ hill foUe d9 in&ck(mManF 2maun+ oftme * contachonory fiscol Policy is likely to be ven effechve Federot Deficif -when gov spen&ng excceds fox revenves Notiono1 Debh-sum taf&l of HQ fcOeral gowrnmenfs boronngsaerfeyears Ancome incnase govenment Spen&ago & Yredxe fox' collechons doing intlarionary pornods (Medicad unemparmnt,ec)