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What refers to the use of taxation and government expenditures to affect the economy?
Wiki User
∙ 11y ago
Fiscal policy
Wiki User
∙ 11y ago
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What are the instruments of fiscal policy?
The government can change its expenditures and its tax collection in order to achieve full employment, control inflation, or encourage growth. By increasing taxes and reining in expenditures, it helps contract the economy. The government can lower taxes and spend more in order to expand the economy.
What are some functions of fiscal policy?
taxation and borrowing. deals with bother government expenditures and taxes that can affect the federal budget.
How would a decrease in total expenditures affect the nation's economy?
it causes a recession
What are the factors that would affect the aggregate demand?
Consumption, investment, government spending, net exports, and aggregate expenditures.
How does the government regulation affects the economy?
It would have been more apt, if it is reworded as How does the government regulation affect market economy. In a controlled economy, government decides what its economy should be and hence has no relevance.In a market economy, the fundamental aspect of Choice and freedom... This enables production as per market demand and also creation of new markets for products. Government regulations affect the choice and freedom and hence may affect the market dynamics and economy.
What are the instruments of fiscal policy?
The government can change its expenditures and its tax collection in order to achieve full employment, control inflation, or encourage growth. By increasing taxes and reining in expenditures, it helps contract the economy. The government can lower taxes and spend more in order to expand the economy.
What are some functions of fiscal policy?
taxation and borrowing. deals with bother government expenditures and taxes that can affect the federal budget.
How would an increase in total expenditures affects the national's economy?
An increase in total expenditures affect the nation's economy would cause an expansion.
How would a decrease in total expenditures affect the nation's economy?
it causes a recession
What are the factors that would affect the aggregate demand?
Consumption, investment, government spending, net exports, and aggregate expenditures.
How does the government regulation affects the economy?
It would have been more apt, if it is reworded as How does the government regulation affect market economy. In a controlled economy, government decides what its economy should be and hence has no relevance.In a market economy, the fundamental aspect of Choice and freedom... This enables production as per market demand and also creation of new markets for products. Government regulations affect the choice and freedom and hence may affect the market dynamics and economy.
How did the new deal affect the government?
It made the economy bad
How does the government fiscal policy affect the economy?
When inflation increase
How did Alexander Hamiltons financial plan affect the economy of the US during the 1790s?
His monetary policy enabled the new country to pay its bills, including the costs for the American Revolution. It introduced taxation and the ability of the government to create debt.
How did Alexander hamilton financial plan affect the economy of the US during the 1790's?
The newly created Bank of the United States helped stableize the economy.
How did a decade of Republican government affect the economy?
A decade of republican government put the economy in debt. During Reagan's time the money was spend on defense spending.
How do tornadoes affect the economy?
well the economy gets money....so its good for them because the government pays them for the damages a tornado does.
