The use of government spending and taxes (the federal budget) to influence the level of aggregate demand and thus the performance of the economy is called “fiscal policy.” To stimulate a sluggish economy with increased aggregate demand, we have seen that the government uses a budget “deficit,” with government expenditures in excess of tax revenues. A natural counterpart of this would be to use a budget “surplus,” with tax revenues greater than government spending, to combat inflation. Since inflation is basically caused by aggregate demand rising faster than output can rise, a budget “surplus” can help to ease inflation by depressing the level of aggregate demand in the economy. This and other anti-inflation policies will be considered in more detail. The third possibility regarding fiscal policy would be a “balanced budget,” in which government expenditures and tax revenues would be equal. Such a budget would be appropriate when neither unemployment nor inflation was considered unacceptably high, as the economy would not benefit from an adjustment to the level of aggregate demand.
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Forex and Dow Jones Recommended Levels – Forex Trading, Currency … – Forex and Dow Jones Recommended Levels EUR/USD Today’s support: – 1.3950 and 1.3910(main), where correction is possible. Break would give 1.3891, where correction also may be. Then follows 1.3857. Break of the latter would result in …
Forex Exchange Morning Report – Forex Trading, Currency Forecast … – Forex Exchange Morning Report Correlations – normal service has resumed (for now). Friday marked the second consecutive day when both US equities and the US dollar were sold, a relationship which had broken down since mid-2008.
Asia Session Recap – Forex Trading, Currency Forecast, FX Trading … – Asia Session Recap The first Asia session of the week began in muted fashion. With the US out on holiday on the first trading day of the week and little economic data or news events to drive the market, most of the majors traded in a …
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XE.com – XE Forex Rates at 2009-05-24 17:00 UTC – Breaking forex and currency news including currency analysis and forecasts, live foreign exchange rates, central bank interest rates, and currency trading strategies from experienced fx traders.
FX Technical Commentary – Forex Trading, Currency Forecast, FX … – FX Technical Commentary Euro 1.4020 Initial support at 1.3728 (May 21 low) followed by 1.3531 (May 19 low). Initial resistance is now located at 1.4058 (Jan 2 high) followed by 1.4148 (Dec 31 high), Forex, Forex Portal, Forex Trading.
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