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Essay / Research Paper Abstract
This 4 page paper answers questions asked by the student concerning the way national economies will behave and interest rates will move when there is an increase in disposable income, a trade deficit and a trade surplus. The bibliography cites 2 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEeconq1.rtf
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Unformatted sample text from the term paper:
resources for consumption. This may impact on an economy in several ways. The additional funds that would have been spent on weapons will become disposable income and as such the
government may choose to pass this saving onto the people in several ways. The impact will be broadly similar. Their may be increased government spending of internal goods and
services, this may be road building schools or even on increasing health. Other goods or services maybe bought, The impact will be that there is money spent inside the country.
This will then create a trickle down effect. The spending will then create more jobs to provide these extra services (Nellis and arker, 1996). This will reduce the reliance of
unemployed labour in the welfare state, if the country has a welfare state system, It will then create a wage earner. This will increase the taxes gained from wages and
also place more disposable income in the hands of the new workers. This will then be spent, indirect sales taxes will go to the government and the income is spent
in the economy, such as at the local shops. This will then create more wealth in the local economy as the shop keeper has more income, he may need to
employ extra staff, or just have increased income, which he is then likely to spend. The recourses that were otherwise used by the military may also decrease in tier utility
cost (Nellis and Parker, 2000). Internationally, there may need to be an increase in interest rates due to the increased disposable income stimulating demand. If demand is over stimulated then
the ability to supply the goods will not keep up with demand, this will then have the effect of increasing process as demand will exceed supply, to decrease the demand
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