Question

Do you believe the federal government or the Federal Reserve can stabilize prices? Please provide real-life examples in your response.

In which areas do you believe the federal government could cut in terms of government-funded programs that would not have a negative effect on our economy? Please explain.

Can you explain why the federal government allows so much of its budget to be spent overseas and towards humanitarian efforts?

Should humanitarian efforts begin at home first?

Answer 1

Yes,the the federal government or the Federal Reserve can stabilize prices beacuse the Fedaeral Bank is the Central Bank of America and one of the function of the central bank is to regulate the monetary policy and stablize the prices.The federal bank in order to meet core inflation keeps a inflation target of 2% .For eg.The federal bank manages the credit policy to fight inflation.

In 1929 US faced a period of depression and at that time the situtaion becaome more worse because the Federal bank has put his remarks in the Long Term Capital Management Crisis which left a negative impact on the society.So the Federal Bank must not interfere in such type of situtaions.

As US is the superpower therefore it is the responsibility of the country to support the countreis which are not able to meet its requirements.Only 1% of the budget is spent overseas and towars humanitarian effort.

Yes,humanitarian efforts begin at home first and then the developed countries must indulge in all those activities.