if government expenditures increase, how is consumption effected and why?
147042
if they increase spending either they can suck more taxes out of you down the road which will in time LOWER consumption\nOR they are spending on putting money into the public (raising welfare) etc which puts more money in the pockets of people and RAISES consumption
622944
Why because if the government just printed more money then inflation would occur and it would cost 10 million dollars to buy bread.  Check out what happened to Germany during WWII.
770728
Budget deficits are only good when\n(a) there is no risk of inflationary pressure\n(b) the country is in recession\n(c) whatever is loaned is spent on increasing productivity.\n\nWhile fiscal discipline is worth striving for, it would be problematic if low interest rates result in a blow-out in consumer borrowing.
179382
The production of capital goods will cause the PPC to shift outwards leading to (potential) economic growth. The opportunity cost of growth is current consumption. Production of consumer goods provides current gratification but does nothing to stimulate economic growth or the outward movement of the PPC.
646606
There are none. Tax is a neccessary burden on the economy for government apparatus to function, and does not affect economy, at least positively.
473101
economic growth and prospect is the best way to improve their life style and life utilities\n\nThere are two ways to growth\n\n1- in the short term. Gov can increase GDP by increase consumption, investment, gov spending or net export\n\n2- For a long term, anything increases in quality or quantities of factors of production will make an economic growth...
403043
Well one positive is that the country makes money that it can use towards things that the government subsidizes, etc.  More tourists means more money for the country.  Conversely, the money (at least in most countries) tends to go to corrupt and greedy governments and the people of the country never see it.
245088
Increase.What about the older generation that gave it up as to not lead a bad example for their children.I havent done that sort of thing for many many years ,but if was ok in the governments eyes ...Hmmmmmmmm
929396
Its the country have a avearge fix budget,then increasing its spending on its military strenght would mean that there is less spending in other areas...like social development etc etc.\n\nincreasing its spending on military will also make the surrounding nation more suspisious.\nThe fact that a country begin to spend more on military hardware means something...and ost of the times,offensive purpose.\nThis usually can lead of various political unstability.
676502
To some extent this is true...but not always.  The amount of capital possed by the government can be raised two ways: 1) Taxes 2) Borrowing.  We been doing a lot of the latter.\n\nThe cited article states how exactly lowering the tax rate does not much good for the current U.S. (except help elections in many cases)\n\nThink about a simple numerical example: Assume you've got a $10 trillion economy and an average tax rate of 30 percent. So the government takes $3 trillion.\n\n\nLet's cut the average tax rate to 25 percent and, for the sake of example, assume that it generates $1 trillion in new economic growth (a Herculean assumption, by the way). So now, what does Uncle Sam get? One quarter of $11 trillion is only $2.75 trillion. The economy grows, government revenues shrink.\n\n\nThat's basically what happened with the large Reagan and George W. Bush tax cuts, both of which were followed by large budget deficits. Yes, spending has a lot to do with that, but the bottom line is unequivocal: In both cases, government revenue was lower than it would have been without the tax cuts.\n\n\nhttp://finance.yahoo.com/columnist/article/economist/4065
1138041
At each of its meeting, the Federal Reserve examines a number of indicators of current and prospective economic developments.  Then it must decide whether to alter its target for the federal funds rate.\n\nAn actual decline in the rate stimulates economic growth, but an excessively high level of economic activity can cause inflation pressures to build to a point that ultimately undermines the sustainability of an economic expansion. \n\nAn actual rise in the rate curbs economic growth and helps contain inflation pressures, and thus can promote the sustainability of an economic expansion; too great a rise, however, can retard economic growth too much. The Federal Reserve’s actions on the target federal funds rate are undertaken to achieve the maximum rate of economic growth consistent with price stability and moderate long-term interest rates.\n\nCheck this out if you want to know the details;\nhttp://www.federalreserve.gov/pf/pf.htm
473482
Similarities\n1. Prices will be high.\n2. Money Floatation will be high\n\nDifferences\n\n1. In Growth, production level and quality of goods also will increase, but in inflation production level and quality of goods remain the same but price will increase..\n\n2. Standard of living will increase in growth, it will be low at inflation periods..
457291
because the government can choose to spend the added income on other things like national defense, intelligence activities, or war, instead of on better social welfare.
419396
Personal consumption \nGovernment expenditures \nPrivate investment \nInventory growth \nTrade balance
664074
Increase revenue (taxes) or decrease spending.
435730
an increase in the money suply would have an increase inthe real gross domestic product, this is because we assume that the production level in the short run is of static equilibrium and thus more money is supplied which would increase the level of unemployment a this would increase the leve of productivity and also the real gross domestic product
545282
Not much difference here today.  What they did not spend today they either spent yesterday or will spend tomorrow.  So as you see it will not have an effect on our economy.  Whether you buy it today or tomorrow you still have to have what you need to live, so you will buy it .