NAME:MARIAN AHMAD ISMAIL ABDI

CLSS:BBA22

ID:BA17322023

The report is chines and us government the way they financial crises affected.

One possibility is that a tariff may be passed on to producers and consumers in the form of
higher prices. Tariffs can raise the cost of parts and materials, which would raise the price of
goods using those inputs and reduce private sector output.

Tariffs increase the prices of imported goods. Because of this, domestic producers are not forced
to reduce their prices from increased competition, and domestic consumers are left paying higher
prices as a result. Economically sheds light on some of the potential consequences of the China-
U.S. trade agreement. For products that are freely traded, import targets above market-
determined levels lower the welfare of the importing country more than they increase the welfare
of the exporting country, and hence reduce global welfare. When trade is not free, increasing
trade boosts the welfare of the importing and exporting countries, but import targets are
generally inferior to a reduction in the trade barriers that impair trade flows in the first place. A
key issue, especially from the perspective of third countries, is how these trade barriers are
lowered: whether preferentially or on a nondiscriminatory basis.

The very large deficits on the way in 2020 are more likely to leave the United States in a better
fiscal situation for the years ahead than an alternative in which the government is more
tightfisted but fails to prevent the widespread collapse of American businesses or help workers in
desperate financial straits.

Factors Impacting the Federal Budget Deficit the us goverment Many people blame the federal
budget deficit on mandatory spending, but that's just part of the story. The biggest contributors to
the current federal budget deficit have been COVID-19, tax cuts, mandatory programs (including
entitlement programs

Since 2001, the U.S. has experienced a deficit each year. Beginning in 2016, increases in
spending on Social Security, health care, and interest on federal debt have outpaced the growth
of federal revenue. In 2020, federal spending increased in response to the COVID-19 pandemic

More than $2 trillion of the debt that President Trump added to the total was from stimulus
spending to help families and businesses recover from the COVID-19 pandemic. Trump's fiscal
year budgets also added to the debt before the pandemic hit.

The us the way become deficit is Over the long term, debt holders could demand larger interest
payments. This is because the debt-to-GDP ratio increases and they’d want compensation for an
increased risk they won't be repaid.