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An expenditure switching policy is any action taken by a government which is designed to persuade purchasers of goods and services both at home and abroad to purchase more of that country's goods and services and less of the goods and services produced by others.
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Give an explicit explanation of expenditure switching and expenditure dampening?
expenditure switching policy is a policy which government tends to switch the consumer's purchase on foreign goods to domestic goods whereas expenditure dampening policy which also known as expenditure reducing policy is a reducing the consumption of imported goods to ensure the balance of payment of a country to become worsen.
Fiscal policy and its objectives?
fiscal policy OBJ. in relation to taxation policy and expenditure policy
Strongest tool of expansionary fiscal policy?
More public expenditure
What is the absorption approach to balance of payments?
Income of the nation (Y) or receipt from the expenditure on its final goods and services is Y =C+I+G+X Absorption A is a nation's total expenditure on domestic final goods and services. i.e. A = C+I+G+M And So, Y-A = X-M Or, B = Y-A, B = current account surplus, if net factor income is zero. Current Account deficit means absorption exceeds output. Now, dB = dY-dA Implies B will be improved only if output increases more to absorption. Balance of Payment policy instrument can be classified in two segment on the basis of their initial impact on the output or absorption. In order to change absorption without changing output, a policy must lead to replacement of foreign goods by domestic goods or vice-versa. e.g. devaluation or import restriction. This is expenditure switching policy. Policies that affect both income and absorption (e.g. fiscal and monetary policy) are expenditure reducing policy
What is expenditure dampening?
Expenditure dampening is a policy which seeks to reduce consumer consumption of imported goods. The government can dampen by increasing rates to make the imported goods cost more.
What are the difference between expenditure-switching and expenditure-dampening?
Expenditure Switching policy: Making people to switch to consume domestic goods than foreign / imported goods.
Give an explicit explanation of expenditure switching and expenditure dampening?
expenditure switching policy is a policy which government tends to switch the consumer's purchase on foreign goods to domestic goods whereas expenditure dampening policy which also known as expenditure reducing policy is a reducing the consumption of imported goods to ensure the balance of payment of a country to become worsen.
Fiscal policy and its objectives?
fiscal policy OBJ. in relation to taxation policy and expenditure policy
Correction of disequlibrium in balance of payment?
disequlibrium in the balance of payments can be corrected,through 2 major policies;the expenditure dampening an expenditure switching policies
Strongest tool of expansionary fiscal policy?
More public expenditure
What is called fiscal policy?
Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy
Is developing nuclear power compatible with a policy of fuel switching?
Developing nuclear power is with a policy of fuel switching because it significantly less carbon producer than fossil fuels which is what fuel switching is about. it may not be technically 100% CO2 free because of processing emissions but long as it is less than your previous power provider (such as switching from coal to natural gas) it is considered as 'fuel switching'.
What is the absorption approach to balance of payments?
Income of the nation (Y) or receipt from the expenditure on its final goods and services is Y =C+I+G+X Absorption A is a nation's total expenditure on domestic final goods and services. i.e. A = C+I+G+M And So, Y-A = X-M Or, B = Y-A, B = current account surplus, if net factor income is zero. Current Account deficit means absorption exceeds output. Now, dB = dY-dA Implies B will be improved only if output increases more to absorption. Balance of Payment policy instrument can be classified in two segment on the basis of their initial impact on the output or absorption. In order to change absorption without changing output, a policy must lead to replacement of foreign goods by domestic goods or vice-versa. e.g. devaluation or import restriction. This is expenditure switching policy. Policies that affect both income and absorption (e.g. fiscal and monetary policy) are expenditure reducing policy
What is expenditure dampening?
Expenditure dampening is a policy which seeks to reduce consumer consumption of imported goods. The government can dampen by increasing rates to make the imported goods cost more.
What has the author D B Owen written?
D. B. Owen has written: 'Replacement policy as part of a capital expenditure policy in the road transport industry'
Explain the role of fiscal policy and monteary policy?
Fiscal Policy involves taxes and spending. It is used (ofen incorrectly) to try to manage the business cycle. It is controlled by congress and the president Monetary policy involves managing the money supply and interest rates. It has proven much more useful in managing inflation and reces fiscal policy also helps in giving such more information about the government expenditure and government policies about the current expenditure
What do you mean by policy?
Fiscal policy refers to the use of government revenue collection and expenditure to influence the economy. It is the means to which a government adjusts its tax rates and spending levels.
