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How effective are these policies?

Compléter

Analyse which policy the statement talks about.

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À propos de Compléter
economics
high school
macroeconomy
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Créé par

Gilma Montecer
Gilma Montecer
Panama

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How effective are these policies?

Analyse which policy the statement talks about.

Gilma Montecer
1

policy fiscal

Raising taxes may also have adverse side effects .
They lower demand , which may increase unemployment
and slow economic growth . This represents the effectiveness of : .

2

policy fiscal

Imposing tariffs against fellow members of a trade
bloc is not an option . Imposing or increasing tariffs
against other countries involves two risks . One is that
it may provoke retaliation and the other is that it may
reduce the pressure on domestic firms to become more
efficient . This represents the effectiveness of : .

3

policy fiscal

This policy may alter a country ? s current account position in the short term but are unlikely to be a long - term solution . This represents the effectiveness of : .

4

monetary policy

This policy can be difficult to control . This is partly because commercial banks have a strong incentive to try to increase their lending and may seek to get round any limits a central bank seeks to impose on the growth of their lending . This represents the effectiveness of : .

5

monetary policy

As with fiscal policy measures , this policy measures are not likely to be an effective long - term solution to balance of payments problems . The one exception may be a government deciding to stop maintaining an exchange rate that is set above or below the market value . This represents the effectiveness of : .

6

invest attractive

policy measures may reduce a current account deficit and a financial account deficit by making domestic products more price competitive and by making domestic markets more to in . This represents the effectiveness of : supply side policy .

7

supply policy side

Some measures , for example increased spending on education , may not be very effective in the short term as they can take a long time to have an effect . This represents the effectiveness of : .

8

policy side supply

Privatisation may not result in an increase in efficiency if the privatised industries become monopolies and do not take into account external costs and benefits . This represents the effectiveness of : .

9

supply polic side

Providing subsidies to firms may not always result in lower prices of domestically produced products . This is because the firms may not pass on the subsidies to consumers and the payment of subsidies may make the
firms complacent . This represents the effectiveness of :

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