Problem
Assume investments in human capital yield a return of 15 percent, private investments yield a total return of 10 percent, and public investments in research yield a return of 25 percent. Assume the deficit is $100 billion per year, and the government wishes to eliminate it. What will be the impact on economic growth of a deficit reduction package that consists of reducing Medicare expenditures by $50 billion, education expenditures by $40 billion, and research expenditures by $10 billion?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.