ECO202 1. Explicitly define both fiscal and monetary policy. 2. Compare and contrast the way Keynes and Friedman approach the economy. What are their key differences and similarities? 3. The following are five current or historical government actions dealing with macro-economic policy. For each scenario determine if it represents fiscal policy or monetary policy‚ and explain your answer. a. President Obama has proposed a budget for the next year and the House of Representatives has
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negative results can be occurred. She could lose her job‚ have to buy the required milk for retail price and also if the inspectors are send out restaurant will lose an entire day of service. Although the greatest number of positives overall indicate the theory of Utilitarianism which Kate should report the issue to the FSA. Not only that according to the Bentham’s features of happiness that if she does report the incident restaurant may get long term happiness by not having any bad publicity or bad financial
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References: 1. Greet Bekaert and Robert J. H. (2009) “International Financial Management”. Pearson Education. 2. John Maynard Keynes (2008) “The General Theory of Employment‚ Interest and Money”. BN Publishing. 3. John Sloman and Peter Smith (2006) “ECONOMICS STUDENTS HANDBOOK”. 6th ed. Pearson Education Ltd.
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Question: Consider the question from the body of the chapter‚ “Does Ethics Mean Good Business?” Would Milton Friedman and John Mackey agree with what the text has to say on the matter? How would each of them answer the question? Answer: Both Friedman and Mackey don’t agree with what the text had to say‚ each has his own opinion on how working under ethics can make a company profitable. In Friedman’s article “The Social Responsibility of a Business is to Increase its Profits”‚ he stated that for
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lottery‚ this represents a transitory income and you will probably not consume all of this transitory income. The key point is that the consumption plan does not depend on the transitory components. To provide empirical content to this hypothesis‚ Friedman added the assumptions that the transitory components are uncorrelated (i.e interdependent) to each other and uncorrelated (i. e independent) to the permanent component. The Permanent Income Hypothesis assumes the absence any correlation between YP
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Ethics Paper Economist Milton Friedman said that “the only entities who can have responsibilities are individuals. A business cannot have responsibilities. So the question is‚ do corporate executives‚ provided they stay within the law‚ have responsibilities in their business activities other than to make as much money for their stockholders as possible? And my answer to that is no‚ they do not.[2]” Nowadays‚ this debate falls into the CSR‚ or also know as the “Corporate Social Responsibility”
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Final Case Analysis Assignment Course: Adms 3660 Professor: Mark Schwartz Section: B
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promote such a society. This was first argued by Milton Friedman in 1955 when he wrote: A stable and democratic society is impossible without a minimum degree of literacy and knowledge on the part of most citizens and without widespread acceptance of some common set of values. Education can contribute to both. In consequence‚ the gain from the education of a child accrues not only to the child or to his parents but also to other members of the
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So this was truly a prediction rather than an attempt to explain the past. In the 1970s‚ however‚ persistent inflation provided a test of the Friedman-Phelps hypothesis. Sure enough‚ the historical correlation between inflation and unemployment broke down in just the way Friedman and Phelps had predicted: in the 1970s‚ as the inflation rate rose into double digits‚ the unemployment rate was as high or higher than in the stable-price years of the 1950s and 1960s. Inflation was eventually brought under
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other problems should be the responsibility of government and non-profit making organizations sponsored by governments. (Pontinen J 2013 ) A bright supporter of the narrow view is Milton Friedman who claims that the only social responsibility a business has is to maximize the profits of its owner or shareholders. Friedman feels that as long as the corporate executive carries out these desires in a way that follows the laws and ethical customs of society‚ this person has fulfilled his or her duty for
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