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How could monetary policy could conflict with fiscal policy in trying to resolve stagflation?
They could conflict because of differing ideas on what will resolve stagflation. The fiscal policy may be spending money to meet the programs for the government. The monetary policy may be trying to decrease business involved in the fiscal policy. Actions meant to lower inflation may worsen the stagflation. It is sometimes difficult to reverse stagflation once it has begun.
Explain what meant by balance of payment constraint refering to the sa?
In a small open economy such as South Africa which is dependent on imported capital and intermediate goods the balance of payments is an important consideration and should be view as a constraint rather than a policy. In other words should there be a balance of payment deficit policy has to be geared to the elimination of this deficit. Authorities generally use restrictive monetary and fiscal policies to do this. These affect the level of growth and income which in turn lowers the demand for imports. Therefore the scope of any expansionary fiscal and monetary policies are limited by the balance of payments considerations. (ie the balance of payments is a constraining factor)
Expansionary fiscal policy includes?
Expansionary fiscal policy is meant to expand the economy by ending a recession earlier, stimulating buying and business success, and decreasing the unemployment rate. This policy is often paired with the lowering of interest rates.
Why do classical or monetarist schools of economic thought maintain that monetary stimulus is doomed to be ineffective in the long run?
I think that you meant "fiscal stimulus" because this is what the monetarists oppose. Monetarists hold that the doctrine of monetary neutrality fixes long-run aggregate supply. On a graph, the long-run aggregate supply appears as a vertical line and is influenced only by real variables such as the natural rate of employment, resource base, technology, etc. A fiscal stimulus acts on the short-run aggregate demand by temporarily pushing the economy above its real potential through the use of government spending and the multiplier effect (1/1-Marginal Propensity to Consume). Monetarists oppose such actions for a number of reasons. First, when the government has to finance a large fiscal stimulus and does not raise taxes, bigger budget deficits occur, which negatively impacts public saving. As such, aggregate supply in the loanable funds market falls and "crowds out" investment by raising the equilibrium interest rate and decreases the amount of available funds. This effect also dampers the strength of the multiplier effect on aggregad Also, the economy is only temporarily pushed above potential. In the long-run, only inflation will result from the stimulus. Other concerns Monetarists have include the issue of lags, especially the implementation lag. By the time a stimulus passes and is put into action, the economy might already reach its trough and start expanding. If fiscal policy is introduced at the wrong time, there are serious inflation risks.
How can federal government affect fiscal policy?
Generally speaking the fiscal policies of the US Federal government are related to the monetary policies of the US Federal Reserve System. With that said, US fiscal policies of the Federal government can affect the economic situation of the US. The Federal government can do the following to influence the US economy, all of which are meant to improve the economy, however, that may not be the intended result. Here are some but not all examples of how the economy of the US can be affected by the Federal government:* Increase or decrease income taxes on personal and corporate income;* Increase or decrease gasoline taxes;* Increase or decrease tariffs;* Increase or decrease capital gains taxes ( part of income taxation );* Increase or decrease social security payments;* increase or decrease certain Medicare prices (costs )* increase or decrease Federal employment policies;* increase or decrease social spending in terms of food stamps as an example; and* Increase or maintain current levels of the national debt ceiling.
How could monetary policy could conflict with fiscal policy in trying to resolve stagflation?
They could conflict because of differing ideas on what will resolve stagflation. The fiscal policy may be spending money to meet the programs for the government. The monetary policy may be trying to decrease business involved in the fiscal policy. Actions meant to lower inflation may worsen the stagflation. It is sometimes difficult to reverse stagflation once it has begun.
What is meant by transit accommodation?
A place where you go to to stay untill you get your life sorted out.
What is meant by capitalized interest?
Within the financial income statement, there is an account created specifically for capitalized interest. Essentially, this account holds a suitable amount of monetary funds to be expended out to upcoming interest payments. This account is considered to be an asset and is expended as time goes on throughout the fiscal year.
Explain what meant by balance of payment constraint refering to the sa?
In a small open economy such as South Africa which is dependent on imported capital and intermediate goods the balance of payments is an important consideration and should be view as a constraint rather than a policy. In other words should there be a balance of payment deficit policy has to be geared to the elimination of this deficit. Authorities generally use restrictive monetary and fiscal policies to do this. These affect the level of growth and income which in turn lowers the demand for imports. Therefore the scope of any expansionary fiscal and monetary policies are limited by the balance of payments considerations. (ie the balance of payments is a constraining factor)
What is meant by the first two non-zero terms in an binomial expansion?
The first two terms in a binomial expansion that aren't 0
What is meant by cubical expansion?
Cubical expansion refers to the increase in volume of a substance when its temperature increases. It is governed by the coefficient of cubic expansion, which quantifies how much the volume of a substance changes with temperature.
What is meant by the expansion velocity of a galaxy?
The speed at which a galaxy is expanding/getting larger.
Expansionary fiscal policy includes?
Expansionary fiscal policy is meant to expand the economy by ending a recession earlier, stimulating buying and business success, and decreasing the unemployment rate. This policy is often paired with the lowering of interest rates.
How much is a 1819 Saginaw treaty sesquicentennial coin worth?
This token was meant to be a keepsake/souvenir and has no monetary value.
What are the function for expansion slots?
The function of expansion slots are exactly like their name. They are meant to hold extra devices. They "expand" your systems ability to have hardware.
What is meant by the phrase expansion of colonialism?
The expansion of colonialism refers to establishing new colonies by various European powers. This process ended by the 20th century.
What is meant by uniform rate of expansion and contraction?
It means expanding and contracting at the same speed.
