Money spending
QUESTION 5
Increasing/decreasing taxes:
The way government spends money in a significant way is connected with the fiscal policy; also, in addition to that, the tax cut plays a role. The frozen beef in a substantial way has different tariffs; this, in most cases, ends up reducing the revenue of the companies producing the products and the national income. This means that the impact will also affect the domestic economy of the united states
Increasing/decreasing interest rates:
Monetary policy, to a greater extent, is involved with the circulation of money; it consists of a lot of exchange in the supply of money and the rates of interest. There is a challenge in a low-interest rate; this will mean that if the prices are low, then the consumer will reduce the way they spend the money, low tax rates cut down the expenditure of the consumer in a significant way. This will mean that there will be no employment, and also the wages given will be low since, with such a scenario, it means that the economic flow is on the increase. With a lack of employment, it is clear that the people will reduce the way they spend the money, and it will affect the economy of the U.S, with work and good wages the economy raises. People tend to use a lot of money when they have it in surplus as compared to the time when they don’t have the money, the more the the high the economy of a given state. On the other hand, the rates of interest in a more excellent way will influence how one takes up the money; when the prices are too high, it implies that only a few percentages will be able to have access to the funds. With monetary policy, it is evident that the economy much depends on the flow of money in a nation; if the tide is right, it means that the state can grow at a faster rate, a staggering economy, on the other hand, is attributed to less money supply.
Increasing/decreasing spending:
The financial arrangement includes cash supply and loan fees. The going through cash being by customers is a hazard and is influencing the monetary stream by an expansion. When the customer spends money on commodities, it means that the nation’s state will be improved. A decrease in spending is usually attributed to unemployment and low wages; it forces people to live within their reach. People will not spend a lot of money on commodities, but they are not sure where to get the money the next day. With employment, there is assurance there will be money to sustain people, while without money, things seem to be out of reach for many.
QUESTION 6
Price (imported and domestic):
“First, on Friday, Japan declared it was expanding its duty on imports of solidified beef from 38% to half until next April” (Roberts 2017). The cost of solidified meat will rise while being imported and remain similar when within the nation. This kind of action means that the local people will benefit from the product as compared to those in other states. With an increase in rates, it means that the economic state of japan will increase while that of the united nation will be affected. People will find it hard to make out profits with such an increase.
Quantity demanded of the imported good:
The interest in imported products could change contingent upon the circumstance. They could raise in cost or remain the equivalent. The expansion of the duty imports will accompany a reduction supply.
The demand for substitutes (substitution effect):
The adjustment in the overall costs of merchandise, so the price of solidified beef expanding, is a direct result of the levies. Solidified beef can be subbed by a ton of things, such as tofu, shrimp, and chicken, yet it won’t frequently be. The interest in solidified meat is high, and it influences different items that might be subbed.