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Why government expenditure financed through debt issues is likely to be more expansionary than tax financed expenditure?
Wiki User
∙ 15y ago
Government financed through debts issues is likely to be more expansionary than tax financed expenditure in that the government will not make any profits because it will be trying to pay its debt than tax financed which is money contributed by the workers of the country and the money is interest free.
Wiki User
∙ 15y ago
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How is the government financed?
The government is financed through taxes.
What are two main expansionary policies?
When the government wants to stimulate economic growth through Fiscal Policy, it will often attempt one of two approaches. It will either cut consumer taxes to give them more disposable income, or it will spend more money on government programs. Both of these policies are considered expansionary.
What are the objective and control of capital expenditure in business organisation?
The control of capital expenditure in a business organization is organizational control. This is often implemented through a budget program.
What does fisical policies deal with?
In economics, fiscal policy is the use of government spending and revenue collection to influence the economy. Fiscal policy can be contrasted with the other main type of economic policy,monetary policy , which attempts to stabilize the economy by controlling interest rates and the supply of money. The two main instruments of fiscal policy are government spending and taxation. Changes in the level and composition of taxation and government spending can impact on the following variables in the economy: * Aggregate demand and the level of economic activity; * The pattern of resource allocation; * The distribution of income. Fiscal policy refers to the overall effect of the budget outcome on economic activity. The three possible stances of fiscal policy are neutral, expansionary and contractionary: * A neutral stance of fiscal policy implies a balanced budget where G = T (Government spending = Tax revenue). Government spending is fully funded by tax revenue and overall the budget outcome has a neutral effect on the level of economic activity. * An expansionary stance of fiscal policy involves a net increase in government spending (G > T) through rises in government spending or a fall in taxation revenue or a combination of the two. This will lead to a larger budget deficit or a smaller budget surplus than the government previously had, or a deficit if the government previously had a balanced budget. Expansionary fiscal policy is usually associated with a budget deficit. * A contractionary fiscal policy (G < T) occurs when net government spending is reduced either through higher taxation revenue or reduced government spending or a combination of the two. This would lead to a lower budget deficit or a larger surplus than the government previously had, or a surplus if the government previously had a balanced budget. Contractionary fiscal policy is usually associated with a surplus. Fiscal policy was invented by John Maynard Keynes in the 1930s.
What is the concept of Multiplier?
The concept of Multiplier highlights the effects of initial investment upon national income through changes in consumption expenditure.
How is the government financed?
The government is financed through taxes.
Distinction between Plan and non-Plan expenditure?
Plan expendirture includes the expenditure of government in the productive assets through centrally sponsored scheme and flagship scheme whereas Non-plan expenditure includes expenditure made by the government for routine normal activities of government e.g. expenditure on salaries, pensions, administrative expenses etc.,
What are two main expansionary policies?
When the government wants to stimulate economic growth through Fiscal Policy, it will often attempt one of two approaches. It will either cut consumer taxes to give them more disposable income, or it will spend more money on government programs. Both of these policies are considered expansionary.
How were cathridals financed?
Cathedrals were financed by the congregation. This was done through their contributions.
Can a house be rented out while financed through your company?
You need to review the documents you signed when you financed your house through your company.
How was the French Revolution financed?
The French revolution was financed through the help of the British
How was the transcontinental railroad financed?
The transcontinental railroads was financed by the Railway Act of 1863, which financed the construction of the railroad through loans and land grants.
Why Malaysian Government sells bills and bonds?
Malaysian Government Securities (MGS) are a coupon bearing bonds issued by the Government through Bank Negara Malaysia (BNM), the Central Bank, to raise long-term funds from the domestic capital market to finance the Government development expenditure. Malaysian Treasury Bills (MTBs) are issued to raise short-term funds for the financing of Government expenditure.
How are animal shelters financed?
through donations
What is the auto lease address?
Depends on who you financed it through.
Correction of disequlibrium in balance of payment?
disequlibrium in the balance of payments can be corrected,through 2 major policies;the expenditure dampening an expenditure switching policies
How do you get the title to your Yamaha motorcycle after you pay it off?
Depends on who you financed your bike through. If you financed it through the actual motorcycle dealership than you should give them a call and ask for the title. Same thing goes for a bank.
