governments should cut down economists are an argumentative bunch. Yet before the crisis most found common ground in the notion that fiscal stimulus was on obsolete relic. Monetary policy seemed wholly capable of taming the business cycle. Government efforts to increase spending or cut taxes to battle unemployment would only much things up. When crisis struck in 2008, however, that consensus evaporated. the frightening speed of the economic collapse spurred governments to action, in spite of economists’
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Test Correlation Table Question Types/Level of Difficulty |LEARNING OBJECTIVES | |Easy |Moderate |Difficult | |1. Explain the foundations of control. |TF |1, 3 |2, 4, 5, 7 |6 | | |MC |1, 5, 7, 10, 13, 16, 23, |2, 6, 8, 9, 11, 12, 14, |3, 4, 20, 27, 30, 31, 36,| |
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Topic 1 The Scope of Economic Analysis Question 1.1 “According to the definition of opportunity cost, the more alternatives that we have given up in undertaking an action, the higher the opportunity cost.” Please comment on this statement and explain your answers using examples. Ans Opportunity cost of an action refers to the value of the best alternative that must be given up in order to undertake that action. That is, the highest-valued option forgone. The statement in the question is
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THE EC-PHILIPPINES STRATEGY PAPER 2007-2013 i TABLE OF CONTENTS LIST OF ABBREVIATIONS .......................................................................................... iii EXECUTIVE SUMMARY............................................................................................... 7 1. COUNTRY ANALYSIS ............................................................................................ 9 1.1. Analysis of the political situation....................................
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objectives of the Nigerian SAP are to: • restructure and diversify the productive base of the economy • achieve fiscal stability and positive balance of payments • set the basis for a sustained non-inflationary or minimal inflationary growth, and • reduce the dominance of unproductive investments in the public sector.1 The corresponding program instruments include the strengthening of demand management policies, adoption of a realistic exchange rate policy through the establishment of Foreign Exchange
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compounds the already sluggish recovery of the banking sector from the Kabul Bank crisis which hit the country in 2010. Trends in public finance deserve attention: more onbudget aid poses challenges the Government’s capacity to execute an increasing budget. Growth of domestic revenues is slowing due to lower performance in the collection of customs revenues. The medium-term outlook is tainted by uncertainty. Political and security uncertainties are expected to limit private-sector growth in the coming
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UNDERSTANDING REFORM: THE CASE OF ZIMBABWE A RESEARCH PROPOSAL SUBMITTED TO GLOBAL DEVELOPMENT NETWORK BY Dr.TAKAWIRA MUMVUMA ECONOMICS DEPARTMENT UNIVERSITY OF ZIMBABWE P.O. BOX MP167 MT PLEASANT HARARE Tel 303211 ext 1301 E-mail: mumvuma@sociol.uz.ac.zw or tmumvuma@mdpesa.org Mr. CHARLES MUJAJATI DEPUTY DIRECTOR-ECONOMICS MINISTRY OF FINANCE & ECONOMIC DEVELOPMENT FISCAL & ECONOMICS DEPARTMENT PRIVATE BAG 7705 CAUSEWAY HARARE E-mail: cmujajat@mweb.co.zw Mr. BERNARD MUFUTE MANAGER: ECONOMIC RESEARCH
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short-term objectives of lowering the fiscal and trade deficits were to some extent achieved but overall economic performance and investment were ignored. In order to control external trade deficits, a policy of devaluation increased the cost of production through an increase in prices of imported raw material especially of plant and machinery. Higher real interest rates due to excessive public borrowing that were due to the failure in reducing fiscal deficits has resulted in financial crowding out and has
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capital flights to those with lower risk assessments. Trade imbalances resulted from rising labor costs within several countries as well as accumulation of trade surpluses between those with the same currency that prevented appreciation to occur. Efforts to improve the financial position of the euro zone have been somewhat positive however, issues continue to arise amongst their citizens as the use of austerity is implemented. The utilization of such a strict program has proven to be beneficial in
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Abstract Evaluation of the Quantitative Easing (QE) stimulus package was reviewed within the framework of this research. The financial crisis that resulted after the collapse of the auto industry along with the savings and loans scandals has given rise to QE. QE can be defined as an attempt to subdue interest rates which in turn encourages spending and stimulates the economy. The U.S. is currently on round three of the QE program. Research of QE seemed important as it has been extended three times
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