• Explain The Effects Of Fiscal Policy On J-LR

I’m going to explain the effects of Fiscal and Monetary Policy on J-LR in terms of the market it operates in.
Fiscal Policy
The advantage of fiscal policy is that it increases consumer spending, the effects includes tax rates decreasing which suggests that J-LR will have more money left as they will be paying less tax therefore the money they save can go towards something new within their business which will increase their businesses potential. This means the lower tax will lead to consumers spending more within businesses therefore businesses such as J-LR will benefit from this particular period of time as they will change their prices to suit the changes. As for interests rates been low is beneficial for J-LR because lower interest make it cheaper to borrow. This encourages spending and investment-LR and other similar businesses tend to increase prices of their products and services when taxes decrease as this helps to increase their sales. Another advantage of fiscal policy is that the government spending increases which then creates a better workforce.
Another disadvantage would be that taxes could rise which would cause a problem for J-LR because their consumers will not have enough money to purchase from J-LR due to increase in tax and would create a large impact on J-LR’S sales and could cause major problem for them. Changes in direct taxes or government spending requires allot of time. The main disadvantage of fiscal policy is that it always leads to another problem which can then rise can rise when solving the other. The main disadvantage of fiscal policy for J-LR is that businesses might begin to rely too much from the government and might start to expect more which is a problem for J-LR as there is a limit of the amount of support businesses can receive from the