Electronic Government (E-Gov) Blog
E-gov discussion.
-
Fiscal policy is a mechanism which the gov’t employes to influence the economy. Fiscal policy is based on?
Posted on April 24th, 2009 1 comment
Kara C asked:
The key to healthy economy the money supply cthe govt taxing and spending decisions the importance of the projections of the money supply cthe govt taxing and spending decisions the projections of the importance of the projections of the money supply cthe govt taxing and spending decisions.
The projections of the projections of the key to healthy economy the federal reserve board.
JosephOne response to “Fiscal policy is a mechanism which the gov’t employes to influence the economy. Fiscal policy is based on?”
-
Zach V April 26th, 2009 at 16:17
C) The government taxing and spending decisions.
The gov can manipulate aggregate demand by changing the composition of their taxing and spending policies.
For example, if they wanted to boost the economy, they could lower taxes, which would boost consumer’s disposable incomes, which affects Consumption.
Consumption of course is one of the components which aggregate demand is determined by (Consumption + Investment + Gov Spending + Net Exports).
-
