Zakah is a unique Islamic institution, incomparable to the tax/expenditure structure of other political economies. Comment on the statement by highlighting its peculiar characteristics.
Q: What is a problem of a government running a large Debt (e.g., debt/GDP ratio of over 100%)?…
A: Government of different countries borrows money from the public, central bank and from foreign…
Q: Japan has had been in recession for decades despite having zero interest rates. Using the…
A: Recession refers to the economic situation in which the GDP per capita decreases and the…
Q: If the government is running a budget surplus, net export is 0. Then: i) private saving is greater…
A: Aggregate expenditure is the sum of consumption, investment, government spending and net exports.
Q: Which of the following statements accurately describes the crowding out effect? a. For a given…
A: Crowding out effect is a term used to indicate the ill effects of excessive government borrowing.
Q: Discuss an example of a fiscal policy and monetary policy that is used to control inflation and how…
A: The exercise of control over the economy via the use of governmental spending and taxes is known as…
Q: Consider a closed economy, Lone. To tackle the severe recession, her government conducts a tax…
A: Meaning of Recession: The term recession refers to the situation under which the economic…
Q: Examine the consequences for a hypothetical developing economy if the rate of borrowing to fund a…
A: GDP: It refers to the gross domestic product of the economy. The more increase in GDP shows the more…
Q: The economic situation just prior to the COVID-19 crisis (a) The economy was still very weak in…
A: Covid-19 pandemic brings about changes in the economic structure. The unemployment rate shot up and…
Q: According to MMT : Group of answer choices a. none of the above b. Government deficits are…
A: The Modern Monetary Theory (MMT) is an economic theory that proposes that the government could spend…
Q: primary differences between fiscal policy and monetary policy. For each, use an example from the
A: Fiscal policy and monetary policy are two very important strategies that are essential for…
Q: The data in the table below are for the economy of Nubia. a. Complete the AE column. Y Yo C S I G X…
A: The measure that depicts the relationship between disposable income and total consumption is known…
Q: Myanmar experienced a 60 percent currency dropped within four weeks as the economy tanks since early…
A: Fiscal policies are the measures used by the government to affect the economy. The major fiscal…
Q: To compare living standards between two countries, we have to do the following: (a) Adjust for…
A: Economic growth refers to the increase in the standard of living. The Standard of living is…
Q: In a closed economy model without government spending, aggregate demand is the sum of... a. Savings…
A: Aggregate Demand is the total value of goods and services in a given period of time and at given…
Q: Outline the appropriate fiscal and monetary policy measures required to restore this economy to full…
A: GDP = C + I + G + X - M GDP in 2019 = 47.9 + 18 + 0 + 20.2 - 28.5 = 57.6 GDP in 2020 = 35.8 + 16.2 +…
Q: In a simple economy with a government, but absent foreign trade, aggregate income is in equilibrium…
A: In a closed economy, there is presence of government but no foreign trade.
Q: small a small open economy, illustrate how a fiscal expansion (such as an increase in government…
A: Fiscal Expansion is defined as the government spending is higher than their revenue, this condition…
Q: Consider Macroeconomic inter-dependencies between countries. If a large economy such as the US…
A: Fiscal policy is the policy imposed by the government to influence economic conditions like demand,…
Q: if a country's economy records a surplus, how will the X and M components be represented in its…
A: National saving is the sum of public and private savings; public saving refers to the savings of the…
Q: Reductions in the personal income tax, often advocated by supply-siders to increase labor supply and…
A: This is an application of the labour-leisure choice problem. Here the consumer chooses the amount of…
Q: How are changes in the country’s internal balance likely to have affected government tax revenue and…
A: Gross domestic product (GDP) is the total value of all the goods and services produced in the…
Q: eductions in government spending cut infrastructure investment which hurts private sector…
A: Supply-sider is a concept state that EG (economic growth ) could be most productive created by(…
Q: Which of the following defines a fiscal policy? a. Commercial bank policies to stabilize domestic…
A: In an economy, when a market is unable to stabilize itself or using an invisible hand, there is a…
Q: 36) An automatic fiscal stabiliser is A) a monetary or fiscal policy that aims to smooth out…
A: The business cycle occurs when there is ups and downs in the gross domestic product along its trend…
Q: A central bank whose sole purpose is to stabilize price growth will never cooperate with an…
A: Central bank is the apex Bank of the nation. The major aim of the central bank is to bring stability…
Q: The three main objectives of the national economy are price stability, full employment, and economic…
A: Fiscal policy is the term used to describe the way in which the government manages the amount of…
Q: Which of the following would be classified as fiscal policy? The federal government passes tax cuts…
A: Answer - Need to find- Which of the following would be classified as fiscal policy Given in the…
Q: Mention another case of an economy as an example of capital flight.Discuss the causes and…
A: The Asian crisis of 1997 is an exampleof a more severe effect due to capital flight. During the…
Q: Fiscal policy refers to changes in Group of answer choices federal taxes and purchases that are…
A: Fiscal policy: These are the policy measures that are being taken care of by the government of a…
Q: The economy of a hypothetical country has been stable for two or three years with very low…
A: Inflationary gap: An inflationary gap is the measure of the amount by which the actual aggregate…
Q: 10) National bills must always be proposed by members of Congress.
A: Even though the idea of a bill can originate from anyone and anywhere and can take inspiration form…
Q: Role of government and financial intermediaries in the recovery – fiscal and monetary policies.…
A: Recovery is the phase after recession. Government and financial intermediaries play a key role in…
Q: Explore the consequences for a hypothetical developing economy, if the the rate of borrowing to fund…
A: Budget proposals or economic shortages can be sustained by creating more currency, which is why the…
Q: Trace the implications of a government budget surplus on the following: National saving Interest…
A: Since you posted a question with multiple sub-parts, we will solve first three sub-parts for you. To…
Q: The gravity model implies that lower distance between two countries is associated to more…
A: More trade between and higher welfare in both countries Option "c" is correct. Isaac Newton's law of…
Q: Explain in detail fiscal and monetary policy
A: Fiscal policy is a policy used by the government to influence the nation's growth by adjusting the…
Q: Which of the following terms is used to describe the set of policies that relate to government…
A: Government taxes and spending influence economic circumstances, notably macroeconomic factors like…
Q: Using the South African SoNA 2020 as a reference, discuss examples of the different ways that the…
A: In a nation, a government has to interrupt the workings to correct some irregularities/failures that…
Q: A new foreign government is elected and announces that once it is inaugurated, it will expand…
A: A new administration is elected, and it promises to raise the money supply once it takes office.…
Q: Distinguish between the following concepts as they apply to Elements of Macroeconomics. Give…
A: Macroeconomics: The term macroeconomics is a part of economic theory that deals with which the…
Q: The neo-classical economists believe that export promotion and trade liberalization are synonymous…
A: Liberalizing trade means to make trade free from all the duties where countries can easily trade…
Q: The country of Meditor, a small country with a closed economy, uses the merit as its currency.…
A: Surplus in the budget of government can be calculated by seeing the excess of taxes(T) over the…
Q: Identify the correct equation from the following equations: Disposable income equals national income…
A: National income refers to the value of products and services manufactured by a nation during a…
Q: Would you kindly explain the fallacy or mistake in this type of thinking. Identify the fallacy or…
A: Economic agents include producers, consumers, and the government. They would result in the…
Q: Member of Parliament, Mr. Parks, is alarmed at the state of the economy. Unemployment is excessively…
A: Answer: Fiscal policy: fiscal policy is the policy of the government to change government…
Q: Why is macroeconomics important? a. it helps in determining appropriate fiscal and monetary policies…
A: Macroeconomics deasl with studying the economy as a whole. It covers a wider aspect and caters to…
Q: It controls over production, distribution, consumption of commodities and to perform this the…
A: Government: It refers to the people who have the authority on their people. The government try to…
Q: With COVID-19, many economies suffered from severe recession. To save their economies, a mix of…
A: Monetary policies are the tools of Central Bank of the country while the fiscal policies are the…
Step by step
Solved in 2 steps
- Which of the following is not a common result of Foreign owning large amounts of Home’s debt? A. Home’s interest rate will be lower due to the larger demand for Home’s credit. B. Increased funds and resources are available for Home’s entrepreneurs C. Foreign’s citizens gain the ability to tank Home’s bond market D. Greater numbers of investors will lead to more creative use of Home’s resourcesExternal debt of the United States refers to O The ownership of nongovernment debt by the government. O The debt of nongovernment organizations. O Combined foreign debt held by sources outside the U.S. government. D O U.S. government debt held by foreigners.Assume the government of Spotifia will exist for only two periods, today and next year. The present value of government spending for the two periods equals $80 Today’s taxes add up to $10. The interest rate is 20%. The assets held by the country are $10. What must taxes be for Spotifia, in absolute value (not present value) next year? $60 $64 $68 $78 none of the above
- The gov of Zimbabwe implements reforms which cause the growth rate of the economy to increase, and are financed through an increase in government spending that only occurs once. What is the likely impact on the growth of the debt to GDP ratio? (there can be more than one answer, select all that apply): To rise initially, followed by a fall To rise initially followed by a plateau To fall To fall initially and then riseCompare monetary and fiscal policies of the UK and another developed country (of your choosing)during the coronavirus pandemic . In addition to explaining which policies the countries used, please describe howunemployment and the public debt have evolved during the pandemic.It is possible to give debt relief to a country without reducing its principal nor interest by simply extending the maturity of the loan in an old debt for new debt swap. True ☐ False ☐ Defend your answer
- Explain how the current fiscal policy agenda (as per the annual budget review released by national treasury) impacts South Africa s global competitiveness through specially its balance of payments, (refer to both trade - and Capital related implication)Select and define in detail eight of the following economic terms: surplus intermediaries deficit Finance system expected rate of return induced investment capital injection capital marketIdentify one real world example that illustrate how fiscal policy can facilitate economic growth in a country
- Assume the government of Spotifia will exist for only two periods, today and next year. The present value of government spending for the two periods equals $80 Today’s taxes add up to $10. The interest rate is 20%. The assets held by the country are $10. What is the present value of next year’s taxes in Spotifia? $60 $64 $72 $78 none of the aboveWhich of the following must be true of an economy in equilibrium with no foreign sector (check all that apply)? Question options: There are no savings (S = 0) The sum of all injections equals the sum of all leakages Any private surplus will be equal to a public (government) deficit of the same size (dollar value) Actual investment (including inventories) is equal to intended investment G – T = S – II S + II = T + GDescribe some of Hamilton's contributions to U.S. financial policies.