--%>
Assignment Help - homework help

Describe the notion of political business cycle

Describe the notion of political business cycle. 

E

Expert

Verified

A political business cycle is the perception that politicians are more interested in re-election than in stabilizing the economy.  Before the election, they enact tax cuts and spending raise to make happy voters even though it may fuel inflation.  After the election, they apply the brakes to hold back inflation; the economy will slow and unemployment will increase.  In this view the political procedure creates economic instability.

   Related Questions in Finance Basics

  • Q : Describe advantages and the

    Describe advantages and the disadvantages of new stock issue? A new stock issue increase funds and decreases the riskiness of the firm. This also tends to send a negative signal to the market as many investors believe a company would just sell

    		•
  • Q : Describe usual pattern of cash flows

    Describe usual pattern of cash flows for share of preferred stock? How does the market fidn out the value of a share of preferred stock, given these promised cash flows?Preferred stock contains no maturity date hence, it has no maturity value.

    		•
  • Q : Explain Department of Finance

    Department of Finance (Finance): The Director of Finance functions as the Governor’s chief fiscal policy advisor with the emphasis on financial integrity of the state. Finance is delegated the accountability for preparation of the Governor's Bud

    		•
  • Q : Would there be positive interest rates

    Normal 0 false false

    		•
  • Q : What is Cash Flow Statement What is

    What is Cash Flow Statement: It is a statement of cash receipts and disbursements for a particular time period.

    		•
  • Q : What is Uniform Codes Manual Uniform

    Uniform Codes Manual (UCM): It is a document sustained by the Department of Finance that sets standards for codes and different other information employed in state fiscal reporting systems. Such codes recognize, for illustration, prog

    		•
  • Q : Causes and solution to international

    causes and solutions to international bank crisis

    		•
  • Q : What is Final Budget Final Budget :

    Final Budget: Usually refers to the Governor’s Budget as amended by actions taken on the Budget Bill (example, legislative changes, and Governor’s vetoes). Note

    		•
  • Q : Describe risks related with using

    Describe risks related with using a large amount of short-term financing for working capital? By using a large amount of short-term financing usually allows funds to be raised at a lower cost however raise the firm's risk.

    		•
  • Q : State Section 31.00 Section 31.00 : It

    Section 31.00: It is a Control Section of Budget Act which specifies some administrative procedures. For illustration, the section subjects to the Budget Act appropriations to different sections of the Government Code, restricts the new positions a de

    		•