the economy we can see that, as the production increased, the income will increase. And then both saving and consumption will increase. From this point, there are two ways to go. More consumption will decrease the production. But more saving will cause more investment and raise the technology, more investment will increase the capital, the increasing of capital will increase the production, in this way our economy will growth. In a short way, after the increasing of income, if people put the majority
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1 How has the asset composition of savings and loan associations differed from those of commercial banks? Explain why and how this distinction have changed (or may change) over time. Savings and loan associations have traditionally concentrated in mortgage lending, while commercial banks have concentrated in commercial lending. Savings and loan associations are now allowed to diversify their asset portfolio to a greater degree and will likely increase their concentration in commercial loans
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Inflation may be defined as a situation in an economy when money supply exceeds available goods and services in an economy. It is attributed to budget defict financing. A temporary rise in price in 'NOT' inflation,but a sustained increase in price level for a certain period of time is. Inflation may be good explained by an example as follows:- Inflation shows economic growth, or at least it reflects some economic activity. The major positive aspect is that it helps smaller firms grow to larger
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and contractionary fiscal policy: Expansionary fiscal policy is defined as an increase in government expenditures and/or a decrease in taxes that causes the government's budget deficit to increase or its budget surplus to decrease. Contractionary fiscal policy is defined as a decrease in government expenditures and/or an increase in taxes that causes the government's budget deficit to decrease or its budget surplus to increase. Classical and
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population growth would be too rapid for the resources available (Malthus was a particular exponent of this view). If this wasn't enough to depress the rate of long-term growth (and the rest of the population along with it!) then diminishing returns would cause further problems for growth. They believed that the government should not intervene to try to correct this as it would only make things worse and so the only way to encourage growth was to allow free trade and free markets. This approach is known
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A Viable Market for Inflation-Linked Products in China How serious is the inflation in China? According to official statistics, inflation rate in China is about 3%~4% at present, which seems very moderate. But this result contrasts with the feeling of Chinese people and is considered incredible. Other evaluation methods are proposed by economists, showing quite different outcomes. In the report Research of the inflation degree in China, Yanchen Qi selected prices of diesel and corn as samples
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unemployment is the most important macroeconomic issue has been further spread by the bad labor market of 09-10 o Inflation rate • High inflation means that prices on average are rising rapidly while a low inflation rate means that prices on average are rising slowly. 0 means essentially the same over time. Retired people lose the most because what they have saved buy less. High inflation helps those who have borrowed. Creates uncertainty o Productivity growth • The aggregate output per hour of work
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Conflict between Governments Macroeconomic Objectives Munene Morris Introduction The aim of this paper is to discuss conflict between government and macro-economic objectives with a special focus on UK economy. It is good to note that over the recent times, the economy of the United Kingdom has passed through extreme turbulent times and it has been facing many challenges on its recovery (Acocella and Jones 2015). The banking crisis that has been witnessed in the recent past has pointed
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prices has helped consumption levels increase and improved GDP growth of a 3% annual rate. Unemployment & Inflation It is important to understand the relationship that exists between unemployment and inflation. A natural rate of unemployment is considered between 4% and 5% and anything below is considered below the natural rate. It will be accurate to say unemployment below natural rate causes wages to increase because there are more jobs available than people and employers are force to increase wages
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Money Growth and Inflation Can reproduction drive demand? As of October, the question shall be answered as the Communist Party of China have ended their one-child policy on child birth and allowed all married couples to have two kids. Such change in policy was directed to alleviate the demographic squeeze noted in the Chinese population, where they are experiencing an aging population along with a stagnant or shrinking work force. At the same time, with an increase in permitted child births, as
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