第31章政府借入の影響

What are some of the ways fiscal policy might encourage economic growth?

What are some fiscal policies for improving a society’s human capital?

What are some fiscal policies for improving the technologies that the economy will have to draw upon in the future?

Explain how cuts in funding for programs such as Head Start might affect the development of human capital in the United States.

Explain why the government might prefer to provide incentives to private firms to do investment or research and development, rather than simply doing the spending itself?

Under what condition would crowding out not inhibit long-run economic growth? Under what condition would crowding out impede long-run economic growth?

What must take place for the government to run deficits without any crowding out?

During the most recent recession, some economists argued that the change in the interest rates that comes about due to deficit spending implied in the demand and supply of financial capital graph would not occur. A simple reason was that the government was stepping in to invest when private firms were not. Using a graph, explain how the use by government in investment offsets the deficit demand.