Problem of time lags in enacting and applying fiscal policy
In brief state and evaluate the problem of time lags in enacting & applying fiscal policy.
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This takes time to ascertain the direction wherein the economy is moving (recognition lag), to obtain a fiscal policy enacted into law (administrative lag); and for the policy to have its full influence on the economy (operational lag). In the meantime, other factors may change, rendering inappropriate a specific fiscal policy. Nevertheless, discretionary fiscal policy is a valued tool in preventing severe recession or severe demand-pull inflation.
Budget Cycle: The time period needed to made a state financial plan and enacts that part of it applying to the budget year. The Significant events in the cycle comprise: • The preparation of G
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Revolving Fund: Usually refers to a cash account termed as an office revolving fund (ORF). This is not a fund however an advance from an appropriation. The agencies might use the cash advance to pay out ORF checks for instant requirements, as specifie
Sinking Fund: It is a fund or account in which money is deposited at customary intervals to offer for the retirement of bonded debt.
Why do analysts compute financial ratios? Ratios are comparative measures. Since the ratio illustrates relative value, they let financial analysts to compare information which could not be compared in its raw form. For instance, rati
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