Managerial Economics - Explain whether each of the following is counted

Managerial economics

1. Cash that you have been saving from birthdays and special occasions.
2. Money in your savings account at your credit union.
3. Money in your checking account at your credit union.
4. Visa gift cards.
5. Available balance on your American Express card.

1. part of an expansionary fiscal policy
2. part of a contractionary fiscal policy
3. part of an expansionary monetary policy
4. part of a contractionary monetary policy
   1. The corporate income tax rate is increased.
   2. Defense spending is increased.
   3. Families are allowed to deduct all daycare expenses from their federal income taxes.
   4. The Federal Reserve Bank sells Treasury securities.
   5. The Federal Reserve Bank buys Treasury securities.

1. Should the government always be required to balance the budget? Explain why and include the pros and cons.
2. How can the federal government fund (finance) the budget deficit?
3. If the federal government decides to issue U.S. Treasury securities to fund the deficit, what will happen to the level of national debt, all other factors held constant?
4. Assuming the federal government and firms compete for the same savers’ dollars in the loanable funds market, what will likely happen to interest rates?
5. Given your answer under (ii and iii) above, is crowding out more or less likely to occur if the deficit is funded by Treasury securities? Explain.