ECON 2301 Macroeconomics Paper
“THE FEDERAL BUDGET DEFICIT AND THE NATIONAL DEBT”
Due: May 3 by 11:59pm
Google the two terms in the subject and obtain the latest numerical data and the data for the past fifteen
years. Research answers to t
he following questions and write a paper that will satisfy the core objectives on
Communication that are listed here:
1.
Interpretation
: Content is high quality, highly relevant, shows exceptional understanding, and
demonstrates a mastery of the subject.
2.
Development
: Central idea is robust and strongly supported. Clear, consistent, observable and
skillful organization. Themes and supporting components result in a cohesive product that
supports the central idea.
3.
Expression
: Language or delivery is proficient, expressive, skillful, clear, free of errors and
appropriate to a targeted, intended audience.
QUESTIONS TO BE ANALYZED IN THE PAPER
:
1.
Depict the
last 15 years
of the Federal budget deficit and the national debt on separate graphs.
2.
Analyze the relationship between the Federal budget deficit and the national debt.
3.
How does a Federal budget deficit come into existence? When there is a budget deficit, how does the administration deal with it?
4.
When dealing with the budget deficit, tell why the administration should be concerned with “crowding out.”
5.
What happens to interest rates, private investment, and consumption if “crowding out” occurs?
Describe how “crowding out” affects other sectors of society, e.g., the business sec
tor, the
consumer sector, the banking sector, the international sector.
6.
What motives could the administration and Congress have to increase or to decrease the budget
deficit? What impact would each of these have on the elements of society listed in questio
n 5?
7.
How could the administration and Congress go about changing the size of the deficit? What
impact would any change have on the current state of the economy (the size of the recessionary
gap or the inflationary gap, whichever exists)?
8.
What percent of th
e funds borrowed in the Federal debt is owed to foreigners, to U. S. individuals
and firms, and to U. S. government agencies?
9.
When the national debt instruments mature, how are the debt holders paid off? Where do these
funds come from?
10.
Is the size of the
national debt a problem? If so, describe the problem. Are the interest payments
on the national debt a problem? If so, describe the problem.
Write up your answers in not less than three pages, double spaced, size ten type, Times
–
Roman font, with 1
inch mar
gins at the top, sides, and bottom of each page. No cover page; title of paper and your name
centered at the top of page one. Paper is due
May 3, 2015 at 11:59pm CT
.
You can achieve a maximum of 200 points. You will lose points for:
1.
Erroneous findings
2.
In
complete report
3.
Inadequate answers to the questions
4.
Not meeting the core objectives
5.
Short paper
6.
Not following the rules
7.
Misspellings
8.
Poor use of English
