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How Are Automatic Stabilizers Used To Combat Inflation?
Beginning of essay
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In today's economy, there are devices present called automatic
stabilizers. Automatic stabilizers, are mechanisms which aid in the correction
of an economic problem without the interference of anyone or anything. They are
perhaps most useful to combat demand - pull inflation. Demand - pull inf ....
Middle of essay
....ent borrowing, therefore a decrease in the demand for the dollar,
therefore a decrease in the interest rate, which would cause a decrease in the
foreign demand for dollar, which would cause the dollar to depreciate, therefore
lowering inflation due to a less valuable dollar.
Using automatic stabilizers causes the government to be able to put less
work in the US fiscal policy. Also, it saves time in fixing an economic problem,
because discretionary fiscal policy (policy in which the government .... |
| Number of words: 386 |
Approximate pages: 2 |
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