INTRODUCTION The aim of this assignment is to analyse the fiscal implications of providing free higher education in South Africa‚ considering the current economic environment of slow economic growth‚ high public debt‚ and an increasing budget deficit. An analysis of the conceptualisation of higher education as a public good shall be provided as well as a brief discussion on the possible effect of providing free high education on the government expenditure‚ government revenue (tax) and government
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1. What is the Solow (or long-run) growth curve‚ why is it vertical‚ and what causes it to shift? Solow growth curve is a production function that expresses the relationship between output and the factors of production. the formula is Y = F(A‚K‚eL) where A= ideas‚ K = physical captial‚ L = Labor‚ and e = natural resources. The Solow growth curve is represented by a vertical line at the Solow growth rate because: I. it does not depend on the rate of inflation. II. there is an underlying assumption
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Financial management What are the monetary and fiscal policy of india and wat are the impacts over Indian economy. ------------------------------------------------- Monetary policy of India From Wikipedia‚ the free encyclopedia Monetary policy is the process by which monetary authority of a country‚ generally a central bank controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth.[1] In India
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The Fiscal Mismanagement and Fixed Exchange rate were the cause of Argentina 2001 Crisis Summary: Argentina’s economy verge to a state of collapse in the year of 2001‚ but the economy started to struggle with an economic recession in 1997. The fiscal mismanagement paired with the fixed exchange rate policy conducted the country to a financial crisis. IMF policies in lending to a country with struggling economy made people think if IMF was the responsible for the default crisis that affected Argentina
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Are monetary disturbances and fiscal deficits inflationary? Empirical evidence from Malaysia Associate Professor Dr Tan Juat Hong College of Graduate Studies‚ Universiti Tenaga Nasional‚ Malaysia ABSTRACT: The study uses the VAR model to investigate the responses of domestic inflation to monetary and fiscal policies‚ with output as the scale variable. The results show that domestic inflation responds positively to monetary policy shocks but not to fiscal deficits. If one assumes the velocity of
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How does the fiscal policy affect economic activity and income distribution in the Australian economy? Fiscal Policy is a macroeconomic policy that can be used by the government to regulate aggregate demand and production. Fiscal Policy is implemented through the government’s annual budget and also involves the regulation of aggregate demand by the government changing its level of planned spending (G) and planned tax revenue (T). Fiscal policy has the power to redistribute income‚ reallocate resources
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The Monetary‚ Fiscal and External Trade Policy in face of the Global Slowdown: The Indian Context The global economic outlook deteriorated sharply over the last quarter. In a sign of the ferocity of the down turn‚ the IMF made a marked downward revision of its estimate for global growth in 2009 in purchasing power parity terms – from its forecast of 3.0 per cent made in October 2008 to 0.5 per cent in January 2009. In market exchange rate terms‚ the downturn is sharper – global GDP is projected
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including credit-card rates and mortgages. Governments define fiscal policy by setting taxation levels and writing legislation and regulation for everything from health care to the environment. Fiscal and monetary policy changes can affect businesses directly and indirectly‚ although competitive factors and management execution are also important factors. Businesses go through cycles of expansion‚ recession and recovery. Monetary and fiscal policies can affect the timing and length of these cycles
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Relationship between non-tariff barriers and trade volume Russia and the United States have a long and interesting relationship politically and economically in the 20th century to which continues today. One of the most important economic relationships between Russia and the United States is the U.S. poultry export market to Russia. Below‚ I will evidence how removal of non-tariff barriers during the mid 90’s affected the underlying trade volume and quality of the poultry market in Russia for
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Comparative Public Administration PROJECT Compare and contract the budget processes and systems of fiscal accountability in Presidential and Parliamentary systems of Government. Student: Lyn Marie James Abstract There is diversity of forms of government (Laundy‚ 1989) and different ways of classifying them and as such‚ this paper sets out to discuss the budgetary powers of the legislature under different forms of government‚ and the environment that informed the political structures
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