1)What are some notable economic policies that current Presidential candidates are attacking?

2)Why should a republican dictate economic policy?

3)How does increase in tax revenue and monetary policy rate affect interest rate and output?

1)A good example is Donald Trump's economic policies outlined in his pledges, which are corporate tax reform, reduction of immigration, protection, and affordable care. The tax reform was to reduce tax payable for individuals and corporates as well as increasing government spending. Most candidates are trying to promote economic policies that are benefiting low- and middle-income individuals. Trade is one policy that candidates are targeting through control of buying and selling prices. They want to make sure that trade agreements are protecting all workers, and that the terms set are fair to all. Trade involves free market supply. With proper and equal education and training, the economy grows and becomes stable due to an increased number of learned people.

Other policies include improvement of infrastructure, reduction of national debts, affordable health care, and cutting interest rates. Presidential candidates are mainly attacking policies relating to taxes because this determines the money that the government is putting into expenditure through investments in specific areas.

2)A republican should dictate the economic policy due to the following reasons:

• The main focus of a republican party is on the investors and the businesses due to the fact that companies which are prosperous boost the economic growth of a country.
• Supply side economics is promoted by the republicans and their aim is to reduce the investment costs, trading and business costs for increasing economic growth.
• Military of the country is strongly supported by the republicans in terms of money.

3)

Tax revenue is income generated by the government through the taxation system. When there is an increase in tax revenue, the income of the government will increase, which will eventually lead to high government expenditure on the provision of public goods and other expenditure by the government. This will increase the aggregate expenditure and hence will increase the aggregate demand in the economy. Now, as there is an aggregate demand in the economy, it will lead to an increase in the output and to equilibrate the money market with goods market interest rate will also increase.

Monetary policy rate (MPR) is the interest rate which a central bank charges from the commercial banks for the borrowing of funds. When there is an increase in the monetary policy rate, lending for commercial banks become expensive. They will reduce their lending and start charging higher interest rates from people as their borrowing rate has also increased. It will reduce the money supply in the economy, reducing the aggregate demand and output.

When there is an increase in tax revenues, it will lead to a rise in both interest rate and output in the economy. When there is an increase in the monetary policy rate, it will lead to an increase in interest rate but a decrease in total real output in the economy.