Question 4: In order to recover economy from fluctuation, the governments and central banks often use expansionary monetary and fiscal policy. a. Give 2 example regarding the two policies. b. In your opinion, should the government (and central bank) use policies to stabilize the economy? Explain based on the opportunity and risk of using policy.

Q: "Money is debt."  Critically evaluate.

A: Money: - money is an object that measures the value of goods and services in an economy and also…

Q: What is the purpose of using the Internal Revenue Service (IRS)?

A: Internal revenue service is a government legal agency of the United States that is responsible for…

Q: A main difference between using cigarettes and using dollars as money is that    have intrinsic…

A: Intrinsic value : The inherent value of an object or commodity that is not based on its monetary or…

Q: What is the difference between Market and Inflation-Free Interest Rates?

A: Market and inflation free interest rate are entirely different concepts. Market is the place that…

Q: Compare credit, savings, and investment services available to the consumer from financial…

A: Financial institutions, which include lenders, financial agencies, insurers, and securities dealers,…

Q: How does the Federal rate affect mortgage rates?

A: A mortgage is simply a house loan and a mortgage rate is the interest rate on such a loan. Through…

Q: Are there ways in which money in our society performs social functions as well as economic…

A: Money can be defined as any good that is widely accepted for the purpose of final payment of goods…

Q: What is Money? Describe money and how it is used

A: The money market is a financial marketplace where short-term borrowing and lending take place.…

Q: How does changing the inflation rate affect the required quarterly savings plan?

A: The increase in the price level of goods and services is known as the situation of inflation. This…

Q: Write a post that explains why money is not the universal measure of all value.

A: Money is the major consideration for all the people in today’s world. Without money the people…

Q: How would you determine the interest rate that the bank charges on the transaction?

A: Many payments are made through our bank accounts and each transaction has a cost attached to it. The…

Q: Do the financial institutions usually quote the interest rate on an annual basis?

A: The interest rate is a specific percentage of principal that must be paid by a borrower of money to…

Q: How does Micro Credit differ from money center banks?

A: Introduction Microcredit is a type of microfinance that essentially gives an individual a very…

Q: how is money created?

A: In economics, money is a tool or a set of assets in the economy through which goods and services are…

Q: I want to know the background of cashless economy. Like how it is start and the influence in the…

A: Sometimes the cashless economy is misunderstood with an economy without cash. Cashless economy has…

Q: what is the role of money in the economy?

A: Money is a widely accepted mode of payment for goods and services or in the discharge of other…

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.