Macroeconomic question急急急!

1. As everyone know government has to pay interest to the bonds they issue. Usually during inflationary period, economic grow rapidly, at the same time, the profit return of investing others is higher. Therefore, less people like to invest government bonds, and then government has to pay higher interest to attract investor. In deflation period, things are reverse.

2. I suggest a permanent tax cut. Aggregate Demand can mean GDP, in major countries around the world today, consumption is the most important component to GDP. Yes it affects government income shortly, cos government collects less tax, but it households feel more satisfaction to consume cos the tax cut is permanent. And then the firms receive more income, they can invest more, government then collect more tax back from businesses. Normally in GFC stage, government post temporary tax cut to the nation, as helping citizens who impacted by GFC. But actually government can easily increase social welfare instead.

1.
通貨膨脹(inflation)和通貨緊縮(deflation)都加重政府的負擔,因為inflation是指貨

幣貶值導致物價上升和進口時比貶值前需要更多錢去買一件產品,而deflation

是指中央銀行沒有足夠貨幣流入市場,導致公司比較難還錢。


2.
a tax cut that will last for only one year

如果政府維持減稅,對長期收入會有影響及未必一定能刺激民眾消費意欲,但減

一年的話可短時間有刺激民眾消費意欲,不會影響長期收入。

2011-12-26 14:07:22 補充：
幾年級的課題???