Microeconomics Essay Example | Topics and Well Written Essays - 250 words - 2

Microeconomics - Essay ExampleHowever, the situation is beneficial to the country in the long term. Currently, US citizens have to cope with high interest rate and high mortgage rates due to the countrys account deficit. The current situation may indicate that the countrys rate of investment is exceeding its GDP. Investment is not a bad thing for the country although it cleverness cause short-term financial strains on the citizens and unfavorable trade balance (Barschel, 2007). However, long-term benefits may displace US to high levels of economic performance.None of the current economic solutions can be applied to deform the situation. In order to contain the situation, the judicature needs to encourage liverys and reduce borrowings among its people. This will bear on giving people the right education in order to sensitize them on the importance of saving within the country. Increasing tax rates will also reduce borrowing and increase savings. The judicature also needs to cut the countries imports while it pull aheads exports. Oil accounts for $140 billion of the total US imports. The government should promote energy conservation and use of alternative energy in order to cuts oil imports and to promote favorable trade