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Keynesians prefer fiscal policy over monetary policy because they believe that during economic downturns, government spending can directly stimulate demand and create jobs more effectively than monetary policy, which can be less impactful in a liquidity trap. They argue that fiscal measures, such as increased public spending or tax cuts, can provide immediate relief and boost aggregate demand, while monetary policy often operates with delays and may not reach consumers effectively. Additionally, Keynesians emphasize the importance of addressing unemployment and underutilized resources, which they believe fiscal policy can target more directly.
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What benefits monetary and non monetary do social responsibility programs bring to a business?
Social responsibility programs can enhance a business's reputation and build customer loyalty, as consumers increasingly prefer to support companies that demonstrate ethical practices. Monetary benefits include potential increases in sales and market share, driven by a positive brand image. Non-monetary advantages encompass improved employee morale and retention, as workers often feel more engaged and proud to be part of socially responsible organizations. Additionally, such programs can lead to stronger community relationships and reduced regulatory risks.
What is headline inflation And what is core inflation?
Headline inflation is what's important to the average person. It accounts for the rise in the cost of living. Core inflation, on the other hand, is what's important to economists and the Federal Reserve, who sets monetary policy. Core inflation accounts for the rise in the cost of goods EXCLUDING food and energy prices. Why do economists and the Fed prefer core inflation metrics? Because food and energy prices are much more volatile, and that volatility is often caused by sudden events such as natural disasters or geopolitical unrest. By focusing on non-food, non-energy inflation (core inflation), the Fed strips away temporary "distractions" to focus on the true interplay of supply and demand in the domestic product markets. This supply/demand interplay is crucial in setting sound monetary policy.
What do most businesses and citizens prefer?
Stable economy
What is better Nike dry fit or Under Armour cold fit?
I prefer Drifit better since its more comfortable! DOnt get me wrong under armour is great I prefer Dri Fit!
Why do economists prefer to compare real GDP figures for different years instead of GDP figures?
economists prefer to compare real gdp figures for different years instead of comparing nominal gdp figures. why?
Limitations of reserve bank of India?
1. There exist a Non-Monetized SectorIn many developing countries, there is an existence of non-monetized economy in large extent. People live in rural areas where many of the transactions are of the barter type and not monetary type. Similarly, due to non-monetized sector the progress of commercial banks is not up to the mark. This creates a major bottleneck in the implementation of the monetary policy.2. Excess Non-Banking Financial Institutions (NBFI)As the economy launch itself into a higher orbit of economic growth and development, the financial sector comes up with great speed. As a result many Non-Banking Financial Institutions (NBFIs) come up. These NBFIs also provide credit in the economy. However, the NBFIs do not come under the purview of a monetary policy and thus nullify the effect of a monetary policy.3. Existence of Unorganized Financial MarketsThe financial markets help in implementing the monetary policy. In many developing countries the financial markets especially the money markets are of an unorganized nature and in backward conditions. In many places people like money lenders, traders, and businessman actively take part in money lending. But unfortunately they do not come under the purview of a monetary policy and creates hurdle in the success of a monetary policy.4. Higher Liquidity Hinders Monetary PolicyIn rapidly growing economy the deposit base of many commercial banks is expanded. This creates excess liquidity in the system. Under this circumstances even if the monetary policy increases the CRR or SLR, it dose not deter commercial banks from credit creation. So the existence of excess liquidity due to high deposit base is a hindrance in the way of successful monetary policy.5. Money Not Appearing in an EconomyLarge percentage of money never come in the mainstream economy. Rich people, traders, businessmen and other people prefer to spend rather than to deposit money in the bank. This shadow money is used for buying precious metals like gold, silver, ornaments, land and in speculation. This type of lavish spending give rise to inflationary trend in mainstream economy and the monetary policy fails to control it.6. Time Lag Affects Success of Monetary PolicyThe success of the monetary policy depends on timely implementation of it. However, in many cases unnecessary delay is found in implementation of the monetary policy. Or many times timely directives are not issued by the central bank, then the impact of the monetary policy is wiped out.6. Monetary & Fiscal Policy Lacks CoordinationIn order to attain a maximum of the above objectives it is unnecessary that both the fiscal and monetary policies should go hand in hand. As both these policies are prepared and implemented by two different authorities, there is a possibility of non-coordination between these two policies. This can harm the interest of the overall economic policy.These are major obstacles in implementation of monetary policy. If these factors are controlled or kept within limit, then the monetary policy can give expected results. Thus though the monetary policy suffers from these limitations, still it has an immense significance in influencing the process of economic growth and development.
What kind of policy customer prefer?
Is that a question? Which customer?
What is liquidity trap?
A liquidity trap is an economic situation where interest rates are low and savings rates are high, rendering monetary policy ineffective in stimulating economic growth. In this scenario, despite central banks lowering interest rates, consumers and businesses hoard cash instead of spending or investing, leading to stagnant demand. This can occur during periods of economic downturn or uncertainty, where people prefer liquidity over investment. As a result, traditional tools of monetary policy, such as lowering interest rates, fail to encourage borrowing and spending.
Liberals tend to prefer what foreign policy?
Intenational cooperation. ---- I hope
Do Americans prefer a marketplace where the government uses its powers towards direction and control?
No, that is the opposite of free enterprise. Most wish the government would stay out of their business. Americans want to be able to continue to make decisions that are best for themselves as opposed to ridiculous government mandates. In certain situations however, the Federal Reserve Bank of New York may enter the foreign exchange markets as monetary policy.
How much fine of Violation of long term care insurance?
It depends on the policy plans of particular company.For term insurance I prefer the buyonline.aegonreligare.com.
Why does not the ethiopian government make aright policy to get back the doctors who either left Ethiopia or studied abroad and prefer to stay there?
The Ethiopian government has other things to worry about other than a policy to get doctors to come back from abroad.
What benefits monetary and non monetary do social responsibility programs bring to a business?
Social responsibility programs can enhance a business's reputation and build customer loyalty, as consumers increasingly prefer to support companies that demonstrate ethical practices. Monetary benefits include potential increases in sales and market share, driven by a positive brand image. Non-monetary advantages encompass improved employee morale and retention, as workers often feel more engaged and proud to be part of socially responsible organizations. Additionally, such programs can lead to stronger community relationships and reduced regulatory risks.
What is headline inflation And what is core inflation?
Headline inflation is what's important to the average person. It accounts for the rise in the cost of living. Core inflation, on the other hand, is what's important to economists and the Federal Reserve, who sets monetary policy. Core inflation accounts for the rise in the cost of goods EXCLUDING food and energy prices. Why do economists and the Fed prefer core inflation metrics? Because food and energy prices are much more volatile, and that volatility is often caused by sudden events such as natural disasters or geopolitical unrest. By focusing on non-food, non-energy inflation (core inflation), the Fed strips away temporary "distractions" to focus on the true interplay of supply and demand in the domestic product markets. This supply/demand interplay is crucial in setting sound monetary policy.
What present tense of word to prefer?
I prefer you prefer he prefers she prefers it prefers we prefer you prefer they prefer
How do you check your insurance policy with reassure America?
To check your insurance policy with Reassure America, you can start by visiting their official website and logging into your account using your credentials. If you prefer, you can also contact their customer service directly via phone or email for assistance. Additionally, reviewing any policy documents you received upon enrollment can provide you with necessary details regarding your coverage.
What is currency drain ratio?
The currency drain ratio is a financial metric that measures the proportion of a country's money supply that is held outside of its banking system, often in the form of cash. It indicates the amount of currency that is effectively "drained" from the economy and not available for lending or investment within banks. A higher currency drain ratio can suggest a lack of confidence in the banking system or economic instability, leading individuals to prefer holding cash. This ratio is important for policymakers as it can impact monetary policy and liquidity in the economy.
