Week 6 Micro

Running Head : RECESSION IN THE USNameCourseUniversityTutorDateAn scotch corner refers to the situation where there is a continuous or calm decline in the GDP of an economy or a proscribe economic growth . The characteristics of a recession include the decline GDP increase unemployment , fall in consumer s sanction and profits reduced enthronization order , reduced involve for imports and increased government expenditure (Kose A et al 2003 . full risks involved in a recession include tightened doctrine conditions that cause slurred flow of money p thither has been a great fear that the US is currently confront a recession . These have had a negative come to on the hatful s cartel in the economy . The consumer confidence according to RBC Cash Index has dropped to a emphasise of 48 .5 this month (www .readingeagle .com Investment has been negatively affected with the increased worries of a recession . Despite the Federal government inducing of reducing the interest rates to urge more people to invest , the decline in people s confidence unflurried hinders investmentInvestment plays a very crucial role in influencing economic growth . To accelerate economic growth and curb the do of a recession investment must be boost . The White house plans to give revenue rebate to individuals and revenue enhancement breaks all for the sake of promoting economic growth through investment job market where the growth has slowed . Tax rebate and tax breaks increases peoples incomes and consumer spending and investment are encouraged . Concerns are until now raised that this may not be of significant squeeze due to the current confidence levelsThe US housing clinical depression has been identified as a `serious issue (www .readingeagle .com . few people are buying houses as they cannot afford the inflate mortgages prices . The recent trends have been the worst in 25 eld . The resultant effect of this is increased foreclosures increasing the glut on homes that have been unsold .

The housing slump leave twinge the Federal government to hike up lower the interest rates in trying to increase investment . This measure capacity worsen the recessionThe global market has changed drastically and the US one dollar bill importance as the world property is now losing fame as other currencies like the Canadian dollar become gilded . This further hinders the investment rates making it hard to turn over economic expansion or growth . Fear of the recession discourages the foreign investors from venturing into the market . A weak and an unstable currency hinders investment both domestically and internationally . Another record quoted for the recession includes the tighter credits and wavy stock markets . The world seems to be losing confidence in the US leadership on several(a) issues like human rights and global warming . This has a negative attitude on the overall investment processCapital flight works further to discourage investment . This is because they will lead to the mental hospital of increased interest rates , which in turn will lead to unemployment due to reduced investment . The vicious circle will continue till the dollar falls further . The US federal government has been accused...If you want to get a full essay, order it on our website: Ordercustompaper.com

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