Government revenue is mainly incurred by direct taxes and indirect taxes. Direct taxes include the income tax; the real estate transfer tax; the property tax; the inheritance tax; tax donations, and parental benefits. Indirect taxes include the value added tax; sales taxes, and import duties. ...
So, the bond contains the information that they will be repaid at some point in the future, say 2031. The bond also contains the principal, which is the amount that the holder will receive at maturity (in 2031). Last but not least there is the interest rate that is paid no the princi...
International Payment and Money Transfer Systems Trade Creation | Definition, Process & Examples Trade Barriers Lesson Plan Trade Restrictions from the Great Depression to Today Protectionism | Definition, Policies & Effects Create an account to start this course today Used by over 30 million students...
At one level and in most economics textbooks, this is an easy question with a rather encouraging answer. The financial sector connects savers and borrowers – providing “intermediation services”. You want to save for retirement and would obviously li
The Role of Automatic Stabilizers in Macroeconomics Like discretionary fiscal policies, automatic stabilizers balance output and demand. The difference is that the changes in government spending and tax rates occur without any deliberate legislative action. In other words, Congress does not have to vote...
This collapse is best seen using monthly NGDP estimates from Macroeconomics Advisers: This might be viewed as a policy error, perhaps partly due to lags, partly due to backward-looking policy, and partly due to the mistaken belief that the banking crisis was the “real problem” and that ...
Macroeconomics and Health (2002) has identified investment in health as an effective instrument for reducing poverty in low-income countries. With their social and health systems cash-strapped, self-help is again being proposed as an allegedly less costly but effective means of improving population ...
Public policy in Ottawa does not seek artificially to increase the extent of owner-occupied housing by encouraging loans that the households may not be able to repay: mortgage interest is not tax deductible, a 20 percent down payment is standard (unless the borrower takes out insurance), and ...
one party to the transaction will not know what price he will ultimately receive in his currency because upon payment the exchange rate may be higher or lower than when he made the trade. If the exchange rate has depreciated, he will receive lower compensation than he had expected. The cost...
Because the output gap relies on the gross domestic product in its calculation, it helps provide a picture of how the economy is doing. More specifically, it can be used as a way to determine whether the economy is underperforming or is growing too quickly. That's because this gap can hel...