Question: Discuss the implication of business cycles on fiscal and monetary policy. Answer: Business Cycle: Market economies have regular fluctuations in the level of economic activity which we call the business cycle. In other words‚ the business cycle is the periodic but irregular up-and-down movements in economic activity‚ measured by fluctuations in real GDP and other macroeconomic variables. A business cycle is identified as a sequence of four phases: 1. Contraction (A slowdown in the pace
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name of the Federal National Mortgage Association‚ also abbreviated as FNMA. It is one of two of America’s largest mortgage companies‚ along with Freddie Mac (Federal Home Loan Mortgage Corporation – FHLMC).1 Fannie Mae guarantees and purchases loans from mortgage lenders to help ensure families can buy new homes or refinance.2 Fannie Mae was founded in 1938 as part of Franklin Delano Roosevelt’s New Deal during the Great Depression. As borrowers began to default on mortgages during the country’s
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FISCAL POLICY AS AN ECONOMIC STABILIZATION MEASURE Fiscal Policy refers to the various decisions undertaken by the government regarding public expenditures and revenue. There are a large number of sub-policies that are encompassed by the fiscal system. But all the policies can be broadly categorized as being either ‘Public Expenditure’ or ‘Public Revenue’. It can be said that the fiscal policy is a direct government intervention in the economic processes of an economy. The fiscal policy
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Factors that affect exchange rates. Like any price‚ the exchange rate deviates from the cost basis - the purchasing power of currencies – under the influence of supply and demand of currency. The ratio of the supply and demand depends on several factors. It reflects connections with other economic categories - cost‚ price‚ money‚ interest‚ balance of payments‚ etc. There is a complex of interweaving and nomination of decisive factors. Among them are the following. • 1.The rate of inflation. The
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How Enzyme Concentration can Affect Rate of Reaction The purpose of this investigation was to see how the concentration of an enzyme affected the rate at which a substance was broken down. We did this by using a white protein called casein. Casein is found in milk powder‚ it is a protein and used mainly as a binding agent in foods‚ because it is mad to proteins and joins to a phosphoric acid it belong to a group called the phophoproteins. In terms of in milk it is said to be healthier if it is
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THE USE OF FISCAL INSTRUMENTS IN SUSTAINABLE BUILDING POLICIES M.M. Sunikka1 Abstract Although progressive government guidelines and knowledge about sustainable building exist‚ sustainability measures are not adopted in large scale. Several barriers have been identified‚ especially the perceived costs of implementing environmental management and the lack of market demand. The choice of fiscal instruments is an important issue in sustainable building policies. This paper presents an analysis
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INTRODUCTION 3 2.MONETARY AND FISCAL POLICIES OF THE USA 3 3.REASONS FOR CONTRADICTORY CONSEQUENCES 5 4.IMPACT ON THE BANKING SYSTEM 7 5.IMPACT ON CITIBANK 8 6.RECOMMENDATIONS 9 7.CONSEQUENCES 10 8.REFERENCES 11 EXECUTIVE SUMMARY The global economic downturn‚ the sub-prime mortgage fiasco‚ investment bank collapses‚ falling shares and home prices‚ and tight credit pushed the United States into a recession
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How Oil Prices Affect the Price of Food By Post Carbon | Wed‚ 21 December 2011 18:07 The current global food system is highly fuel- and transport-dependent. Fuels will almost certainly become less affordable in the near and medium term‚ making the current‚ highly fuel-dependent agricultural production system less secure and food less affordable. It is therefore necessary to promote food self-sufficiency and reduce the need for fuel inputs to the food system at all levels. The connection between
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Analysis An external and internal environment scan is necessary in developing a strategic plan for an organization. Longmont Housing Authority (LHA) needs to assess their internal and external environment to see a full view of their strengths‚ weaknesses‚ opportunities‚ threats‚ and trends. In this paper‚ an internal and external competitive environmental scan for Longmont Housing Authority will be performed. An analysis of the most important external environmental factor in the remote‚ industry‚ and
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the NAEYC Standards on Leadership and Management‚ provide at least two examples of ways the Management Policies and Procedures (10.B) are connected to Fiscal Accountability Policies and Procedures. I found several connections between the Management Policies and Procedures (10B) and fiscal accountability policies and procedures. The two examples that I will discuss are 10.B.01 & 10.B.04. The way that 10.B.03 connects to Fiscal Accountability Policies and Procedures is by emphasizing on the fact that
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