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Concerning the four countries in question it is evident that the rate of growth of the Gross domestic product varies from one country to another (The world bank, 2014). Based on the comparison among the four countries it is apparent that a high volume of Money at LCU corresponds with a low gross domestic product and a low volume of money at LCU corresponds with a high gross domestic product. Money at LCU is one of the significant economic indicators since it refers to the money that is in circulation (Econstats, 2014). In this case, financial transaction tax will have a direct impact on the money at LCU. In this case, financial transaction tax will lead to a decrease for money at LCU. Based on the relationship between money at LCU and GDP a reduction in the money at LCU will raise the rate of GDP for a given country. Consequently, this will have a reduction in money at LCU will lead to reduction in inflation since it will reduce the spending habits of residents in a country. On the other hand, an increased local currency unit volume will increase money supply, which may lead to inflation (Eisenstein, C. 2011, 295).
In conclusion, an analysis of the four data variables Inflation, money at its local currency unit (LCU), and revenue collected form tax and the gross domestic product outlines that financial transaction tax can have an impact on the economy of a country. Because financial transaction tax can regulate the money supply of a country, it can have an effect on the economic activities of a country. As a result, financial transaction tax can be used to stabilize economic conditions of a
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Analysis of time series data and forecasting has been used in many fields and most commonly in the stock market prediction using the past data. Time series analysis is a form of statistical data analysis on a series of sequential data points that are usually measured at uniform time intervals over a period of time.
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'Krugman & Obstfeld derive the following basic equation for aggregate demand (AD):
The monetary policy implies the quantity of money supplied in the economy. This directly affects the aggregate demand. 'According to DornBusch (2005), a change in the nominal money stock brings a proportionate change in the aggregate demand schedule.'2
The unemployment rate in the United States used had been hovering below 5% for the past few years. During the past year the unemployment rate in the United States has nearly doubled to reach the mark of 9.4% as of June of 2009.
Moynihan and Titley (2001) have said that United Kingdom was the first country to revolutionize. It is the first industrialized country. However, these days the same country has been undergoing de industrialization.
These days it has been
The human capital, as an investment, requires a cost and, at the same time, payment for any return over the monetary or non-monetary lifetime.
According to Harmon et al (2003), extensive research works and literature have been
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