Managing Finance Name of the University Student Name

Running head: MANAGING FINANCE
Managing Finance
Name of the Student
Name of the University
Author note

1
MANAGING FINANCE
Table of Contents
Answer to Question 1......................................................................................................................2
Answer to Question 2......................................................................................................................4
Answer to Question 3......................................................................................................................4
Answer to Question 4......................................................................................................................5

2
MANAGING FINANCE
Scenario analysis
Answer to Question 1
Some fundamental challenges that Australian economy is currently facing include Public
debt, closure of some automotive companies and housing affordability challenges.
Public debt
The public debt has a negative effect on the economic growth and prosperity. To control
public debt, the government, need to expense more on interest costs out of its budget. Thus the
public investment will reduce as a result. The reduced investment and lower confidence will
slowdown productivity growth and wages of workers. The social mobility and economic
opportunities also impacted negatively due to growing public debt. As the debt is significantly
higher, it is difficult for the government to address crisis situation such as future emergencies,
recessions, war, and unanticipated challenges. The below graph shows the trend in the movement
of public debt of Australia
Figure 1: Public debt of Australian Government