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Discuss a savings or investment incentive that can be used to grow the economy Why might this policy not have its intended effect?
One investment incentive to help grow the economy is for the government to lower the tax rate. This is done to encourage people to invest more. Businesses will more than likely use this extra money to invest in their company to help build sales which in turn helps add economic growth. People also would be able to save more money. This would allow banks to be able to give out more loans which would also help the economy.
Another incentive comes in the savings realm. For example retirement savings plans such as IRA's or 401K programs. This program allows people to put untaxed money into savings for retirement. If rates are high they might put more money into savings. This will give banks and investment firms more money to invest which will help the economy grow.
The problem I see it seems that people now days prefer to live out of their means and spend money rather than invest the money. So even if there is great rates it will not be of any effect because people are not saving they are spending. Then I also see there are people who would love to save and help their future while also helping the economy the problem is the cost of living now days is very expensive and these people just cannot afford to invest.
What else can I help you with?
What isimpact of FDI on Indian economy?
Implications of Foreign Direct Investment in Indian Economy
What is a government directed system intended to mobilize?
Planned Economy
Chinas economy is known as a what economy?
China's economy is known as a command system, or a socialist economy. This means that the wealth of everyone in China's work force is evenly distributed amongst everyone in the country. This poses a problem for people's incentive to work which is the main flaw in this type of economy
What did perestroika aim to do A. Make the Soviet economy more open to foreign competition and individual citizens. B. Continue the Soviet economy's success by trading only with other Communist countr?
Perestroika aimed to make the Soviet economy more open to foreign competition and individual citizens by introducing reforms that encouraged private enterprise and market mechanisms. This initiative was intended to revitalize the stagnant Soviet economy by increasing efficiency and productivity. It sought to reduce the central planning that characterized the economy, allowing for greater individual initiative and foreign investment.
What is Napoleons policy of preventing trade between Great Britain and continental Europe intended to destroy Great Britains economy?
It was called the Continental System.
What was the incentive for the Kazakh government moving the capital to Astan?
Astana is closer to Russia and Europe. By moving the capital the government hopes the economy will benefit from European tourism and investment.
What are monetary incentive?
monetary incentive is increase ammount of money in economy sector!
Which type of economy provides the least incentive for companies and workers to improve?
command economy
Foreign investment in the US is seen as a sign of in the US economy?
Foreign investment in the US is seen as a sign of in the US economy?
What are the incentives in the economy?
It means that the incentive is in the form of money.
What is the relationship between saving and investment in an open economy?
In an open economy, saving and investment are closely linked. When individuals and businesses save money, it can be used for investment in the economy. This investment can lead to economic growth and increased productivity. Conversely, if there is a lack of saving, it can limit the amount of funds available for investment, potentially slowing down economic growth.
What is Investmen incentive loan?
An Investment Incentive Loan is a financial product designed to encourage businesses to invest in specific projects or sectors, often through favorable terms such as lower interest rates or extended repayment periods. These loans are typically offered by governments or financial institutions as part of economic development programs to stimulate growth, job creation, and innovation. By reducing the financial burden on businesses, these loans aim to promote investment in areas deemed beneficial for the economy.
How investment multiplier defend public works in depression economy?
Investment multiplier defends public works in the depression economy because it promotes investments in a deadbeat economy in hopes of turning it around.
What isimpact of FDI on Indian economy?
Implications of Foreign Direct Investment in Indian Economy
Do tax cuts worsen the economy?
No..they actually stimulate the economy by freeing money for investment
In an open economy, is total investment equal to the sum of domestic investment and foreign investment?
In an open economy, total investment is not necessarily equal to the sum of domestic investment and foreign investment. Total investment includes both domestic and foreign investment, but the two may not always add up to the total due to factors such as capital flows, trade balances, and other economic variables.
If the economy is confident that there is increasing demand for increased levels of production what will be the impact on the investment?
investment increases.
