Furman Says Rising Deficit From Tax Reform Is 'Nuts'

The video discusses the current fiscal stimulus and its implications on the economy, highlighting a trillion-dollar deficit and a 4% unemployment rate. It examines economic projections, referencing experts like Krugman, and debates on tax reforms. The potential impact of tax cuts on capital inflow and GDP is analyzed, noting that while GDP may rise, GNP might not benefit as much due to external repayments.

What is the expected deficit as a percentage of GDP for the next fiscal year?

• 5%

• 7%

• 3%

• 10%

Which economist's perspective is highlighted in the debate on the American economy?

• Adam Smith

• Milton Friedman

• Paul Krugman

• John Maynard Keynes

What is the main concern regarding the tax reform's impact on the U.S. economy?

• Decrease in foreign investments

• Reduction in GDP

• Increase in unemployment

• Rise in trade deficit

How might the influx of capital affect the U.S. GDP and GNP?

• Both GDP and GNP will decrease

• GDP will increase, but GNP might not

• GNP will increase, but GDP might not

• Both GDP and GNP will increase

What comparison is made to describe the U.S. economy's situation?

• Germany

• China

• Japan

• Ireland