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What are the measures government can adopt to solve excess supply.?
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What are monetary measures adopted by central bank to curb inflation?
(A). Monetary measures: Monetary measures relate to the control in the supply and circulation of money in the country. 1. Bank rate policy: In case of inflation, the bank rate is increased; the supply of money is controlled. 2. Open market operation: During inflation, the central bank sells govt. securities and price bonds in the open market in order to contract the supply of money. 3. Variable reserve ratio: In order to control inflation, the central bank increases thereservation. 4. Credit Rationing: When there is inflationary pressure, the state bank adopts the policy of credit rationing. (B). Fiscal Measures: Measures in connection with public borrowing, public expenditures and public revenues are called fiscal measures. 1. Public Borrowing: During inflation, increase the public borrowing, during deflation, decrease in public borrowing. 2. Public Revenues: In order to control inflation, the increase in public revenues by the Govt. 3. Public expenditures: Inflation is also controlled by decreasing the public expenditures by the Govt. (C). Realistic Measures: 1. Increase the supply of goods and services: When the supply of goods and services is increased, the prices will come down. 2. Population planning: Control on population by adopting different measures of family planning will reduce the demand and finally prices will be controlled. 3. Price control policy: The govt. should adopt strict price control policy against the profiteers and hoarders. 4. Economic Planning: Effective economic planning is necessary to control the inflation in the country.
Why did the government adopt a laissez-fairs policy toward business during this time?
Because they liked to eat a big double meat burger
Why are many west a frican countries trying to adopt free market system?
This is because when there are free market system's there will be the freewill to produce and distribute any good without the intervention of either he government or any other individual.
What is the explanation for the measures to control deflation?
To fight deflation, attempts must be made to raise the volume of aggregate effective demand. It will output, income and employment in the economy, Effective demand can be increased partly by consumption expenditure and partly by increasing investment expenditure. Various measures to increase consumption and investment expenditures in the economy.1. Reduction in Taxation:The government should reduce the number and burden of various taxes levied on commodities. This will increase the purchasing power of the people. As a result, the demand for goods and services will increase. Moreover, sufficient tax relief should be given to businessmen to encourage investment.2. Redistribution of Income:Marginal propensity to consume can be raised by a redistribution of income and wealth from the rich to the poor. Since the marginal propensity to consume of the poor is high and that of the rich is low, such a measure will help increasing the aggregate demand in the economy.3. Repayment of Public Debt:During deflation period, the government can repay the old public debts. This will increase the purchasing power of the people and push up effective demand.4. Subsidies:The government should give subsidies to induce the businessmen to increase investment.5. Public Works Programme:The government should also directly undertake public works programme and thus increase expenditure in public sector. Care should, however, be taken that the public works policy of the government does not adversely affect investment in the private sector; it should supplement, and not supplant, private investment. For this, it is important that only those projects should be selected for the government's public works policy, which is either too big or not so profitable to attract private investment.6. Deficit Financing:In order to have significant expansionary effects, the government's public works schemes should be financed by the method of deficit financing, i.e,, by printing new money. The government should adopt a budgetary deficit (excess of government expenditure over its revenue) and cover this deficit through deficit financing. Deficit financing makes available to the government sufficient resources for its developmental programmes without adversely affecting investment in the private sector.7. Reduction in Interest Rate:By adopting a cheap money policy, the monetary authority of a country reduced the interest rate, which stimulates investment and thereby expands economic activity in the economy.8. Credit Expansion:The central bank and the commercial banks should adopt a policy of credit expansion to promote business and industry in the country. Bank credit should be made easily available to the entrepreneurs for productive purposes.9. Foreign Trade Policy:To control deflation, the government should adopt such a foreign trade policy that, on the one hand, increases exports, and, on the other hand, reduces imports. This kind of policy will go a long way in solving the problem of overproduction, and help overcoming deflation.10. Regulation of Production:Production in the economy should be regulated in such a way that the problem of over-production does not arise. Attempts should be made to adjust production with the existing demand to avoid over-production.In short, fiscal policy alone or monetary policy alone is not sufficient to check deflation in an economy. A proper co- ordination of fiscal, monetary and other measures is essential to effectively deal with the deflation­ary situation.
Why might these countries not have wanted to adopt a single currency?
They didn't want to adopt to a single currency because it would withdraw their own coins and paperbill's from circulating.
What government did Meiji adopt?
yokota
What kind of government did Belize adopt?
Belize adopted self government
What form of government did marathon adopt?
democratic
How many organizations help gays adopt?
The number of organizations is unknown, but probably measures in the hundreds.
Why did the government of Kentucky adopt the rebel flag?
It didn't.
The Ming government chose to adopt a policy of what?
isolationism
What features Mongols adopt from the Chinese government?
ll
Which form of government did France adopt in 1875?
republic
What forms of government did France adopt in 1875?
Republic
What structure of government did the Soviet planners adopt?
Federation
What are two aspects of the English government that Voltaire wanted to adopt in France?
Politics and government
Why did the Australian government adopt the westminister system?
Australia was colonised by Great Britain. It therefore followed that, at Federation, Australia would adopt the Westminster system of government used in Britain.
