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Current Event Article - Research Paper Example

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This case is most appropriately fit in the case of declining or recessional economic conditions. Liquidity gets increased in the economy while deficit budgeting is experienced. Government…
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Current Event Article
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Current Event Article

Download file to see previous pages... When the budget is referred to as a deficit package, it is requested to relax the ceilings for the sake of new borrowings. The current scenario states that the government will sooner be defaulted. It was given to retire the old treasury bills till March 2013 but it has not been exercised yet. For instance the consequential debt imposes immense detrimental effects over the economic scenarios. Generally surplus is not a positive symptom for the government. It creates dissatisfaction among people that they are paying (tax charge) more than they are getting benefitted. To retire the treasury bills, government may go for cutting the dollar value such that they can pay back in consideration with cheaper value. But this special purpose value decrement will not be suitable for other dimensions of the economy including world economic environment as dollar is a standard currency. The deficit, surplus and debt are the key macroeconomic variables which have enough impact over the economic growth as well as ...Download file to see next pagesRead More
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Current event report
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