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If policy makers are worried about inflation what would be a correct fiscal policy change?
A fiscal policy solution to inflation would be to either increase taxes or decrease government spending.increase the tax rate
What is the connection between an increase in government purchases and the trade deficit?
This is a question of the crowding effect of government spending. When the government increases purchases, it will increase the GDP by a multiplier effect, i.e., the change in GDP is the change in G times 1/(1-MPC). In an IS-LM model, the increased GDP will raise the interest rate and discourage the private investment. Such a "crowding out" effect will reduce the GDP increase. On the other hand, the increased interest rate will raise the international demand for domestic currency and, in turn, increase the exchange rate. A higher exchange rate makes the domestic products more expensive and foreign goods cheaper. Therefore, the export will be lowered while the import will be increased. As a result, the trade deficit will be enlarged.
Increase in real GDP are often interpreted as increase in welfare. what are some problems with this interpretation?
Increase in Real GDP is often interpreted as increase in welfare because Increase in Real GDP causes an increase in average interest rate in an economy by which Government expenditures (Government purchases and transfer payments) increases. Problem with this interpretation is that the Real GDP increases due to increase in price level or money market by which real money supply decreases and money supply demanded exceeds real money supply. That means that people start demanding more money in order to full fill their requirements.
What can be done by the government to increase employment in teritary sector?
What can be done by the government to increase employment in teritary sector?
Why is it difficult for the federal government to increase or decrease spending?
Because two thirds of all government spending is on entitlements which the government connot easily alter. (by Solomon Zelman)
If policy makers are worried about inflation what would be a correct fiscal policy change?
A fiscal policy solution to inflation would be to either increase taxes or decrease government spending.increase the tax rate
Does increase in inventory increase cash flow?
Increase in inventory reduces the cash flow because by paying cash company purchases inventory.
What is the connection between an increase in government purchases and the trade deficit?
This is a question of the crowding effect of government spending. When the government increases purchases, it will increase the GDP by a multiplier effect, i.e., the change in GDP is the change in G times 1/(1-MPC). In an IS-LM model, the increased GDP will raise the interest rate and discourage the private investment. Such a "crowding out" effect will reduce the GDP increase. On the other hand, the increased interest rate will raise the international demand for domestic currency and, in turn, increase the exchange rate. A higher exchange rate makes the domestic products more expensive and foreign goods cheaper. Therefore, the export will be lowered while the import will be increased. As a result, the trade deficit will be enlarged.
Are purchases account is increased by a credit and decreased by a debit?
Purchases account is personal account in nature so debit means increase and credit means decrease.
What was mercatilism?
An economic system (Europe in 18th century) to increase a nation's wealth by government regulation of all of the nation's commercial interests commerce: transactions (sales and purchases) having the objective of supplying commodities (goods and services)
Increase in real GDP are often interpreted as increase in welfare. what are some problems with this interpretation?
Increase in Real GDP is often interpreted as increase in welfare because Increase in Real GDP causes an increase in average interest rate in an economy by which Government expenditures (Government purchases and transfer payments) increases. Problem with this interpretation is that the Real GDP increases due to increase in price level or money market by which real money supply decreases and money supply demanded exceeds real money supply. That means that people start demanding more money in order to full fill their requirements.
Does an increase in accounts payable on the satatement a positive effect on the cash flow?
Increase in accounts payable will increase the cash inflow because if the cash is paid instead of credit purchases company has to pay cash which reduces the cash but as purchases has made on credit and no cash has to be paid that's why it has positive impact on cash flow.
Is it appropriate to decease or increase an image in potoshop?
yeah it is...
What would most likely occur if the government's priority was to increase government expenditures?
increase taxesincrease taxesincrease taxes.
Has experienced a rapid increase in the use of credit cards for purchases Answer Asia Vietnam Thailand Africa?
thailand
What can be done by the government to increase employment in teritary sector?
What can be done by the government to increase employment in teritary sector?
Anti-federalists and the increase of power of the central government?
Anti-federalists and the increase the power of the central government?
