Sample Essay

The expenditure changing policy is also one of the economic policies that are used to attain an internal and the external balance for an economy. The expenditure changing policy involves fiscal and monetary policies which have the aim of making the domestic expenditure equal to the production level in the economy. The policy for the US economy that can be employed to support the aim in the present times can be to improve the level of investment in the job market to increase the level of employment which can increase economic activity and production in the economy. Similarly the increase in the employment also results in increased disposable income which therefore increases the consumer expenditure in the market.

However in order to retain this expenditure for the domestic market only, regional businesses need to be promoted to increase domestic trade.

The current account position for the United States can also be improved by implementing measures that focus on the transaction in the current account. Direct controls can be employed on the transactions and elements in the current account (Bergsten, 1996). The domestic expenditures need to be improved for the economy by reducing them while the direct controls in terms of import surcharges, and taxes on imports can improve the revenue level in the current account through foreign trade. Subsidies provided to local businesses and sectors with high demand of export for their products and services can also take the form of direct controls which improve the current account statistics for the United States.

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