Question

In recent past the KSA (Kingdom of Saudi Arabia) has announced to increase the rates of...

In recent past the KSA (Kingdom of Saudi Arabia) has announced to increase the rates of Value added tax (VAT). This policy of taxation will be referred as: *

(a) Monetary Policy

(b) Fiscal Policy

(c ) Long term policy

(d) Short term policy

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Due to the corona virus affecting the economy of Saudi Arabia, and especially the labor market,...
Due to the corona virus affecting the economy of Saudi Arabia, and especially the labor market, the government of KSA has announced that they will pay 60% of the salary of the workers in the private sector. The students are expected to answer the following questions: Is this considered a fiscal policy or a monetary policy? Explain the impact of this policy and illustrate it using graphs. The impact should be explained from the goods and service market because we...
During a recession, monetary policy typically has an immediate impact via ... an increase of long...
During a recession, monetary policy typically has an immediate impact via ... an increase of long term interest rates. a reduction of long term interest rates. an increase of short term interest rates. a reduction of short term interest rates. a reduction of inflation expectations.
For question 5 I chose c... question 6 stems off of question 5 directly, so I...
For question 5 I chose c... question 6 stems off of question 5 directly, so I would like clarification on whether my question 5 is right, and then come to a question 6 answer. QUESTION 5 The central bank of Saudi Arabia (Saudi Arabian Monetary Authority or SAMA) has pegged (fixed) the country’s currency, Saudi riyal (SAR), to the US dollar (USD) at the rate of 3.75 SAR/$. To implement this policy, the SAMA prints money (SAR) and buys USD...
40. Under perfect capital mobility and fixed exchange rates, expansionary _____ is a futile attempt because...
40. Under perfect capital mobility and fixed exchange rates, expansionary _____ is a futile attempt because the _____. a. fiscal policy; LM curve effectively is vertical. b. monetary policy; LM curve effectively is the same as the FE curve. c. fiscal policy; interest rate does not change. d. monetary policy; IS curve will shift to the left. 41. The J curve shows that: a. devaluation is more likely to improve the trade balance in the short-run than in the long-run....
QUESTION 48 In the classical view, "expansionary" fiscal policy financed by a tax increase would    ...
QUESTION 48 In the classical view, "expansionary" fiscal policy financed by a tax increase would     a.    work as long as the tax increase was a direct increase     b.    not work because a tax increase would cause inflation     c.    not work because private expenditures would be reduced by the same amount as the increase in public expenditures     d.    not work because real interest rates would decline     e.    not work because of crowding out 2 points   ...
1) Open market purchase will result in: increase in bank reserves and a decrease in the...
1) Open market purchase will result in: increase in bank reserves and a decrease in the federal funds rate. increase in bank reserves and an increase in the federal funds rate. decrease in bank reserves and a decrease in the federal funds rate. decrease in bank reserves and an increase in the federal funds rate. 2) An increase in government expenditure would shift the: A) aggregate demand curve rightward. aggregate demand curve leftward. aggregate supply curve rightward. aggregate supply curve...
If interest rates are expected to increase in the near future, you are better off holding...
If interest rates are expected to increase in the near future, you are better off holding onto a long-term bond. A. False: Long-term bonds are never a good investment when the economy is growing normally. B. True: You'll gain more by owning long-term bonds when interest rates rise. C. False: You should hold onto shorter term bonds that are less subject to prices falling if interest rates rise. D. True: Short-term bonds are a very bad idea.
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a...
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a balanced budget B. maximum​ employment, stable​ prices, and moderate​ long-term interest rates C. a stable U.S. dollar on foreign exchange markets and moderate​ long-term and​ short-term interest rates D. an economic environment in which investment in U.S. stock and money markets is encouraged The Federal Reserve Act says that the Fed must use​ ______ to achieve its objectives. A. bank reserves B. commercial banks...
1.High interest rates might………….purchasing a house or a car but at the same time high interest...
1.High interest rates might………….purchasing a house or a car but at the same time high interest rate might ……………….saving. A)  discourage; encourage B)  discourage; discourage C) encourage; encourage D)  encourage; discourage 2.An increase in interest rates might ………..saving because more can be earned in interest income. A) encourage B) discourage C) disallow D) invalidate 3.   Everything else held constant, an increase in interest rates on student loans ……………….. A)  increases the cost of a college education. B)  reduces the cost of a college education. C)...
The FOMC is concerned about inflation and has ________ the federal funds rate. Due to substitution...
The FOMC is concerned about inflation and has ________ the federal funds rate. Due to substitution effects, other ________ interest rates will ________ almost immediately. A. increased; short-term; decrease B. increased; long-term; increase C. decreased; long-term; decrease D. decreased; short-term; decrease E. increased; short-term; increase