Fiscal policy refers to the manipulation of government revenue and expenditure to achieve policy objectives associated with:
1. Moderating resources allocation and adjusting price mechanisms in favor of the satisfaction of
public wants by encouraging socially optimal investments as well as increasing rate of investment;
2. Redistributing wealth and income;
3. Guiding the national economy in terms of growth and stability;
4. Increasing employment opportunities;
5. Counteracting inflation; and Improving the balance of payments.
The usefulness of fiscal policy is often limited by:
a) Structural constraints in the economies; and
b) Observed conflicts of objectives between long term growth and short term stability; social welfare and economic growth; income distribution and growth and personal freedom and social control.
Wilfykil answered the question on February 6, 2019 at 12:39
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To what extent can an economy be supported by deficit – financing?
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Date posted:
February 6, 2019
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February 6, 2019
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February 6, 2019
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Define taxation.
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February 6, 2019
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February 6, 2019
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February 6, 2019
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February 6, 2019
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February 6, 2019
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February 6, 2019
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February 6, 2019
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February 6, 2019
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A central bank is largely referred by economists as the bank at the apex with monetary authority.
Clearly explain the major functions of a central bank.
(Solved)
A central bank is largely referred by economists as the bank at the apex with monetary authority.
Clearly explain the major functions of a central bank.
Date posted:
February 6, 2019
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Answers (1)
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You are given the following information about the commodity and Money markets of a closed economy
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The commodity market
Consumption function:
C = 50 + 2/5Y
Investment...
(Solved)
You are given the following information about the commodity and Money markets of a closed economy
without government intervention.
The commodity market
Consumption function:
C = 50 + 2/5Y
Investment function:
I = 790 – 21r
The Money Market
Precautionary and Transactions demand for
money MDT = 1/6 Y
Speculative demand for money
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Determine the equilibrium levels of income and interest rate for this economy
Date posted:
February 6, 2019
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Answers (1)
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February 6, 2019
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Answers (1)
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(Solved)
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February 6, 2019
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Date posted:
February 6, 2019
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Answers (1)
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Date posted:
February 6, 2019
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Answers (1)
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Date posted:
February 6, 2019
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Answers (1)
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Why is it important to estimate National Income of a Country? What difficulties do economists
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(Solved)
Why is it important to estimate National Income of a Country? What difficulties do economists
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Date posted:
February 6, 2019
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Answers (1)
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Assume the following information represents the National Income Model of an "Utopian" economy.Y = C + I + GC = a + b(Y – T)T...
(Solved)
Assume the following information represents the National Income Model of an „Utopian? economy.
Y = C + I + G
C = a + b(Y – T)
T = d + tY
I = IO
G = GO
Where a > O; O < b < 1
d > O; O < t < 1
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I = Investment
G = Government Expenditure
Find the equilibrium values of income, consumption and taxes.
Date posted:
February 6, 2019
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Answers (1)