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How was Trickle-Down economic theory designed to helps the economy?
Wiki User
∙ 11y ago
The notion of trickle-down is that increased credit or funds at the disposal of those least in material need willlead to increased economic activity because, their personal needs being already met, they will invest the money speculatively rather than merely spend it (as less wealthy people would) on basic consumption. The resulting growth in economic activity will "trickle-down" to those lower on the economic scale through the increased demand for goods and labor that expansion brings. The central proposition of "trickle-down" theory is that this is a more efficient and effective way to generate economic growth and widespread prosperity than alternative strategies such as (but not limited to) increasing credit or funds for people with lower incomes as they will spend more of it, stimulating growth through demand for goods and services.
Wiki User
∙ 11y ago
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What does the Keynesian economic theory suggest?
That the government oversee and regulate the balance of the economy.
A theory that states it is healthy for the economy if the government is involved in setting economic policy is called?
Laissez-faire
What is economic decoupling?
It is a theory wherein a lesser emergent economy , is able to continue its trajectory of constant growth irrespective of whether a more mature , older , established economy goes into decline or recession. The theory postulates that the larger economy, will not draw the emergent economy off its established path of growth, neither will it be sucked into its wake.
As the leader of the Chicago School Milton Friedman became associated with what economic theory based on controlling the supply of money in an economy?
Monetarism
What is centrally planned economy with all economic with all economic and political power resting in the hands of the central government?
A centrally planned economy with all economic and political power resting in the hands of the central government is known as communism. Karl Marx developed communism into a scientific theory.
Under this economic theory the government does not get involved in the economy?
Laissez-Faire
Under this economic theory the government does not get involved in the economy.?
Laissez-Faire
What does the Keynesian economic theory suggest?
That the government oversee and regulate the balance of the economy.
What economic theory is characterized by market competition and private ownership?
free market economy. think america
A theory that states it is healthy for the economy if the government is involved in setting economic policy is called?
Laissez-faire
What is economic decoupling?
It is a theory wherein a lesser emergent economy , is able to continue its trajectory of constant growth irrespective of whether a more mature , older , established economy goes into decline or recession. The theory postulates that the larger economy, will not draw the emergent economy off its established path of growth, neither will it be sucked into its wake.
As the leader of the Chicago School Milton Friedman became associated with what economic theory based on controlling the supply of money in an economy?
Monetarism
What is centrally planned economy with all economic with all economic and political power resting in the hands of the central government?
A centrally planned economy with all economic and political power resting in the hands of the central government is known as communism. Karl Marx developed communism into a scientific theory.
What has the author Aleksandr Ivanovich Anchishkin written?
Aleksandr Ivanovich Anchishkin has written: 'The theory of growth of a socialist economy' -- subject(s): Economic development, Marxian economics, Economic conditions
Communism is an example of what type of economic system?
It is a form of a command economy. Communism is an economic theory which stresses that the control of the means of producing economic goods in a society should reside in the hands of those who invest their labor for production.
What was the old theory of how economic depressions should be solved?
Depression should be left to be solved themselves without the Government getting involved in the economy.
What is economic theory another name for?
An economic theory is a theory that has to do with the production, distribution and consumption of goods and services.
