answersLogoWhite

0


Best Answer

Sounds like an essay question.

The government's fiscal policy affects everything. The tax structure affects peoples decision on how much to save and spend and keeps the Accountants busy trying to figure out ways to keep money from being taxed.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Can the government can influence the amount of savings and expenditures by altering the tax structure and changing the levels of government spending by using the fiscal policy?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Economics

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 strategies are used by supermarkets airlines hospitals banks and cereal manufacturers to influence demand?

Some of the strategies that can be used to influence demand include altering the prices and offering discounts for the purchase of multiple products or services. Discounts can boost the number of orders.


If there are a lot of people without jobs how do you think this will affect the amount of money that the government earns through taxes?

I think the government can use the national budget by changing the way it taxes people and altering the pattern of government spending to stimulate economic growth.


Explain the distinction between autonomous and accommodating items in the balance of payments?

Autonomous items in the balance of payments capture transactions that private agents undertake when they maximize profits or welfare. These items are sometimes referred to as above the line items. Accommodating items reflect government actions aimed at altering the size and the composition of the balance of payments, and they are sometimes referred to as below the line items.


What ways does government affect supply and demand?

1st way of government policy to affect demand/supply is through price ceilings and price floors. By price ceiling it means that goods have to be sold below this price and price floors means that goods have to be sold above this price set. When price is forced down, suppliers will supply less and consumers will demand for more causing shortage, vice versa, when price is high, supplier will provide more and consumer will demand less causing surplus. 1 such example is price floor on agricultural. 2nd way where government policy affect demand/supply is through enforcing or altering taxes, minimum wage rate, subsidies and so on. Removing tax and increasing minimum wage rate increases disposable income of consumers which ultimately increase demand of good for normal goods and decrease demand of good for inferior goods. Hence, increasing tax and decreasing minimum wage rate will have the opposite effect. Increasing subsidies for producers will reduce their cost of production which will increase the suppliers willingness and ability to produce goods and services. -- By Johan Chua Song Yi

Related questions

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.


An author can influence how his or her readers feel about the characters in a story by altering the tone?

A.ture


What altering means?

Altering means "changing", in the sense of changing the structure, form or appearance of something, or of tailoring clothes in order to make them more suitable.


The structure that links sensation with emotion and is part of the altering mechanism for the brain?

the limbic system


What is critical judgment?

You know exactly what your are deciding without being under the influence of mind altering drugs.


What is the medical term meaning altering the structure of a vessel by dilating it using a balloon inside the vessel?

angioplasty


Altering the three-dimensional structure of an enzyme might?

prevent the substrate from binding the enzyme's active site


The study of how environmental factors influence the expression of genes without altering the DNA is known as?

its called epigenetics


Why are prions hazardous?

Prions have the ability to transform normal, benign protein molecules into infectious, deadly ones by altering their structure.


How does doping alter the atomic structure of silicon?

It does not alter the atomic structure of the silicon at all, what it alters is the balance of bulk valence band and conduction band electrons in the crystal of silicon thus altering its bulk conductivity.


How can you change the density of solid rock?

Melting the rock to its liquid form then re-freezing it into a solid will realign the rock's crystaline structure thereby altering the density.


What strategies are used by supermarkets airlines hospitals banks and cereal manufacturers to influence demand?

Some of the strategies that can be used to influence demand include altering the prices and offering discounts for the purchase of multiple products or services. Discounts can boost the number of orders.