P. 1
Impact of Fiscal Stimulus on Aggregate Demand

Impact of Fiscal Stimulus on Aggregate Demand

|Views: 13|Likes:
Published by ClassOf1.com
"The rich countries are resorting to fiscal stimulus to increase aggregate demand to fight the current recession. Discuss the feasibility of lower middle or low income countries resorting to fiscal stimulus to stave off recessions in their own economies. You can use one or more countries as examples.
(Hint: Ask the following questions: How much should be additional spending and how much tax cuts? From where can the government borrow money? How much? On what kind of projects should the money be spent? What will happen to employment, prices, trade balance, interest rates and money supply?)
"
"The rich countries are resorting to fiscal stimulus to increase aggregate demand to fight the current recession. Discuss the feasibility of lower middle or low income countries resorting to fiscal stimulus to stave off recessions in their own economies. You can use one or more countries as examples.
(Hint: Ask the following questions: How much should be additional spending and how much tax cuts? From where can the government borrow money? How much? On what kind of projects should the money be spent? What will happen to employment, prices, trade balance, interest rates and money supply?)
"

More info:

Categories:Types, School Work
Published by: ClassOf1.com on Jul 11, 2013
Copyright:Attribution Non-commercial
List Price: $6.99 Buy Now

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
See more
See less

01/27/2014

$6.99

USD

pdf

text

original

Economics

Homework Help
24/7 Support
Step-by-Step Solutions

LEARN TO EXCEL

Experienced Tutors

Detailed Explanation

www.classof1.com/homework-help/economics Toll Free: 1-877-252-7763

classof1. You can use one or more countries as examples. interest rates and money supply?) www.com/homework-help/economics *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades. .Sub: Economics Topic: Macro Economics Impact of Fiscal Stimulus on Aggregate Demand Question: The rich countries are resorting to fiscal stimulus to increase aggregate demand to fight the current recession. (Hint: Ask the following questions: How much should be additional spending and how much tax cuts? From where can the government borrow money? How much? On what kind of projects should the money be spent? What will happen to employment. trade balance. Discuss the feasibility of lower middle or low income countries resorting to fiscal stimulus to stave off recessions in their own economies. prices.

non-plan expenditure of $60 billion Across-the-board cut of four percent in the ad valorem central value-added tax Interest subvention of two percent on export credit for labour intensive sectors Additional allocations for export incentive schemes Full refund of service tax paid by exporters to foreign agents Limits under the credit guarantee scheme for small enterprises doubled Lock-in period for loans to small firms under credit guarantee scheme reduced India Infrastructure Finance Co has allowed raising Rs. Developing countries have been deeply affected by the current financial crisis.classof1.Sub: Economics Solution: Topic: Macro Economics The current crisis in the global financial system and world economies has led to a sudden fall in the aggregate demand in the all global economies. a country of the lower middle income group. This increase in government spending would increase money supply.com/homework-help/economics *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades. . unemployment and growth rate of the country. The Government of India announced stimulus package. the highlights of which include Plan. The central bank of India and Government of India has responded to this crisis quickly as it would affect the aggregate demand. India was one of fast growing countries with a 9% growth rate but after this crisis India’s growth has fallen to around 7%.100 billion through tax-free bonds Export duty on lumps for steel industry reduced to five percent Thus. the financial crisis has forced the government to take necessary action to overcome this problem stimulus package. India. has also been affected by this financial crisis. www.

The government would take necessary steps to reduce interest rate. . www.classof1.com/homework-help/economics *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades.Sub: Economics Topic: Macro Economics aggregate demand and investment in the economy.

252.classof1. The list of subject areas in which we offer academic assistance is as given below: 1 Accounting 23 Engineering 24 English 25 Environmental Engineering 26 Environmental Science 27 Essay Writing 28 Finance 29 Financial Accounting 30 General Studies 31 Geography 32 Geology 33 HBS Case Studies 34 History 35 Hospitality Management 36 Human Resource Management 37 Information Systems 38 International Economics 39 International Finance 40 Investment Portfolio Management 41 MS-Office 42 Macro Economics 43 Management Accounting 44 Marketing 45 Mass Communication 46 Materials Engineering 47 Math 48 Mechanical Engineering 49 Medical Science 50 Micro Economics 51 Nursing 52 Operations Management 53 Philosophy 54 Physics 55 Physiology 56 Political Science 57 Psychology 58 Religious Studies 59 Rhetoric 60 Social Studies 61 Social Work 62 Sociology 63 Statistics 64 Taxation 65 Zoology 2 Actuarial Science 3 Anatomy 4 Anthropology 5 Architecture 6 Astronomy 7 Biochemical Engineering 8 Biochemistry 9 Biology 10 Business Law 11 Business Management 12 Chemical Engineering 13 Chemistry 14 Civil Engineering 15 Classical Studies 16 Computer Science 17 Corporate Finance 18 Corporate Strategy 19 Cost Accounting 20 Earth Science 21 Economics 22 Electrical Engineering www.com/homework-help/economics *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades. .7763.com or call our toll-free number 1.877.Sub: Economics Topic: Macro Economics For more details on Classof1 or customized academic assistance please feel free to write to us at learning@classof1.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->