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Why a cut in government spending has a larger effect under a fixed exchange rate system and perfect capital mobility than in a closed economy?
Wiki User
∙ 11y ago
Ester Pandu
because its government cut
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Impossible trinity in economics?
The 'impossible trinity' is the combination of free capital mobility, a fixed exchange rate and independent monetary policy. Countries can choose any two of these three but achieving all three is impossible e.g. the UK has free capital mobility and independent monetary policy but a floating echange rate and China has independent monetary policy and a fixed exchange rate but restrictions on the movement of capital.
If the government were to reduce the tax rate on capital spending how might this influence entrepreneurial spending?
The new answer has either profanity or suspected vandalism.
Which of these results from greater capital mobility?
Increased foreign investment.
Why there is Philippine Stock Exchange?
The Philippine stock exchange acts as an intermediary between the public individuals who have capital and the companies that need capital. The companies raise capital by offering shares on the exchange.
The process of globalization involves an increase in what?
The mobility of goods, services, labor, and capital
What are the two types of government spending?
C. capital goods and labor.
Impossible trinity in economics?
The 'impossible trinity' is the combination of free capital mobility, a fixed exchange rate and independent monetary policy. Countries can choose any two of these three but achieving all three is impossible e.g. the UK has free capital mobility and independent monetary policy but a floating echange rate and China has independent monetary policy and a fixed exchange rate but restrictions on the movement of capital.
If the government were to reduce the tax rate on capital spending how might this influence entrepreneurial spending?
The new answer has either profanity or suspected vandalism.
What has the author Robert A Mundell written?
Robert A. Mundell has written: 'Man and economics' -- subject(s): Economic policy, Economics 'Capital mobility and stabilization policy under fixed and flexible exchange rates' -- subject(s): Capital, Foreign exchange
What is the definition of capital mobility?
Capital mobility refers to the ability of the private funds to move across the national boundaries in the pursuit of the higher returns. The capital mobility usually depends on the inflows and the outflows of the capital and the currency restriction.
What are capital flows?
Look up the definition for capital mobility. Same thing
What has the author Roger H Gordon written?
Roger H. Gordon has written: 'Dividends and taxes' -- subject(s): Corporations, Dividends, Mathematical models, Taxation 'Do we now collect any revenue from taxing capital income?' -- subject(s): Econometric models, Income tax, Tax revenue estimating, Taxation 'International taxation' -- subject(s): Foreign Investments, Foreign income, Income tax, International business enterprises, Taxation 'Why is capital so immobile internationally?' -- subject(s): Capital levy, Capital movements 'Expenditure competition' -- subject(s): Citizen participation, Citizen particpation, Decentralization in government, Economic aspects, Economic aspects of Decentralization in government, Economic aspects of Residential mobility, Government spending policy, Local finance, Residential mobility, Waste in government spending 'Taxation in developing countries' -- subject(s): Taxation, Case studies 'Do publicly traded corporations act in the public interest?' -- subject(s): Attitudes, Business enterprises, Corporate profits, Corporations, Economic aspects, Portfolio management, Stockholders, Valuation
Which of these results from greater capital mobility?
Increased foreign investment.
What is capital and foreign exchange?
In general capital is financial resources.. And Foreign exchange is called Forex.
What has the author Robert Cumby written?
Robert Cumby has written: 'Capital mobility and the scope for sterilization' -- subject(s): Mathematical models, Capital movements 'The predictability of real exchange rate changes in the short and long run' -- subject(s): Forecasting, Econometric models, Foreign exchange 'Forecasting exchange rates and relative prices with the hamburger standard' -- subject(s): Econometric models, Foreign exchange rates, Comparative studies, Prices, Hamburgers, Purchasing power
How is the economy so bad?
Government spending (sucking much valuable and needed capital from the private sector to the public sector in the form of taxes and fees).
Why there is Philippine Stock Exchange?
The Philippine stock exchange acts as an intermediary between the public individuals who have capital and the companies that need capital. The companies raise capital by offering shares on the exchange.
