Macroeconomic

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Student’s Name: Professor’s Name: Course number: Date: Macroeconomics Fiscal stimulus is where the state increases its public spending or cutting down on the taxes charged, all this with the aim of stimulating the economic growth of a country. It can be achieved for example when the government increases or adds liquidity to the current market by buying bonds via the federal reserve. It can also be through the offering of business bailout packages to the various business types. President-elect Donald Trump indicates the fiscal stimulus will be oriented in boosting the infrastructure of the country and increase the wages and also the number of jobs (Schwartz). This combined with the cutting down of taxes promised by Trump will affect the deficit and also the amount of money spent by the Country. The spending of around 550 billion dollars on infrastructure will forecast or estimate to a debt averaging at 5 trillion US dollars. Trump is planning to get money to pay for the projects through and infrastructure fund that will enable the raising of enough money in deficit to build the American economy. The government will raise funds from government bonds that will be repaid back to the citizens or the people within a particular period after their maturity (Timiraos). The issue is that the deficit will keep widening despite the fact that the current situation has proved to be somewhat efficient because of the gradual decline in the rate of unemployment. Private investors and citizens are to be critical in raising the money required to propel Donald Trump’s projects in the infrastructural sector and accompanied with lowering of interests. The federal deficit has

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