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he unemployment rates does undercut directly the major efforts put underway in the stabilization of the banking industry whenever crises arise like the recent financial crisis. The unemployment rates do increase the amount of toxic assets held by banks. This is because the unemployed borrowers end up defaulting on the loan agreements. This indicator also increases the cost of Term Asset-Backed Lending Facility that is meant to safeguard banks against defaulters. When many people are unemployed, they are unable to make deposits in the banks and thus the liquidity levels go low.
This indicator does exacerbate the frictions experienced in the credit market since rates go high. These frictions could end up posing obstacles that bring difficulties to banks in their quest to adjust nominal rates whenever they arise. Examples of these obstacles created by the inflation on banks is the ceiling by the government on interest rates in the banking sector; and those that arise from the banks’ response to the given incentives and risks, which are brought about by the existing regulations, laws, economic conditions and policies. These frictions could also affect the economic growth by reducing the available amount to be borrowed. With high inflation, we get a situation where the interest rates keep rising and the cost of borrowing in the banking sector increases. The increased cost of borrowing due to inflation means that few borrowers would be willing to access loans thus reducing the portfolio of banks.
This fiscal policy does affect the rate of economic growth since it adds to the aggregate demand. An increase in total federal spending, without a similar rise in tax receipts, means that for every dollar spent by the government, there is an income for the people that do satisfy the basic increment in the demand for the public commodities. Thus the people are willing to spend and in essence do rise the income for the second wave of demand increases thus reducing the income
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Globalization is the latest trend which has been fuelled by the development and advancement of technologies, thus offering the citizens worldwide an opportunity to buy and sell products regardless of any geographical or national boundaries.
Battery Intentional torts require that the action must bring about or result to some sort of physical or mental distress effect upon another person.2 Battery is an unlawful interference with bodily integrity3 falling under the category of intentional torts together with assault, false imprisonment and infliction of mental distress.
The level of real income rose as the result of high terms of trade as well the inflation rate got reduced. The ratio between the prices of exports and the prices of imports are regarded as the terms of trade. With high rate of terms of trade the country will be able to obtain higher imports with relatively fewer amounts of exports.
erve Bank of Australia (RBA) was established in the year 1959. The creation was put into place by the reserve bank act 1959. The act lays down the roles of these bank a puts it that this is not a profit acquisition bank. The bank introduction has seen many improvements in the economy of Australian.
The revenue of the government can be arranged through a variety of ways like taxation, sale of fixed assets, borrowings and consumption of fiscal reserves. The government try to use the fiscal policies to stimulate the level of aggregate demand in the economy (Kopcke, Tootell and Triest, 2010, p.
In other words, fiscal policy can be referred to as the method to raise or spend the government’s revenue in order to attain sustainable economical condition (Vitek, 2012). To cope with instable economical conditions (inflation, unemployment, and deflation) the government makes appropriate decisions to regulate the flow of cash and credit in an economy either by taking loans from the international financial bodies or by reducing the public tax burden (Perry, et al., 2008).
Management, financial sources, ability to advertise and communicate with its customers plays an important role in the activity of every organization. The company and marketing specialists should not focus just on microenvironment factors; macro-environment that comprises social, political, economic, legal factors is just as much important.
The article addresses each of these issues and what Pres. Barack Obama must do to achieve good results together with the people who might be able to help him. Fiscal cliff, Tomasky suggests, will most probably be responded to with the impending tax increase
Examples of these are: number of competitors, intensity of competitiveness, and market growth rate. An equity research, on the other hand, is a report written and submitted by a securities firm for its clients. It seeks to aid them in making
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