Fiscal and Monetary Policy
Introduction
As an assistant manager for Skanska I have been asked by my manager to explain how fiscal and monetary policy decisions affect the business in which I work. To undertake this task I will provide explanation of the fiscal and monetary policies. I will also explain what interest rate is and what could be possible changes on it. Additionally, I will explain how both policies could make changes in employment level. Fiscal policy
Economic climate is essential to be controlled within every single county because this helps control important activities within the particular country. All countries where economy is developed created and follow polices which ensure that money spent by government are used in an appropriate way. Those policies are known as fiscal and monetary policies.
Fiscal Policy
Fiscal policy could be defined as a legislation which was introduced by government to control the economy. The fiscal policy control and affects public taxation, public expenditure and borrowing money. Fiscal policy includes direct and indirect taxation, public finances, public sector borrowing, pre-budget report and redistribution of income. The purpose of fiscal policy is to monitor, control and support economy as a whole.
(Ref.http://www.investopedia.com/terms/f/fiscalpolicy.asp#ixzz1nhAdVG74)
Taxation
Taxation could be defines as a collection of money by government from their citizens and corporation businesses to found operational expenditure of the country. Changes in taxation would have a large influence on economy because amount of obtained money could be spent for different purposes or needs of the country. Taxation could be divided into two main types which are direct and indirect taxation.
(Ref. Book: Business level 3, Book Publisher: Edexcel Page: 300 Author John Bevan)
Direct Taxation
This particular type of taxes is paid by population and businesses on their income and profit. If the amount of income is higher than
As an assistant manager for Skanska I have been asked by my manager to explain how fiscal and monetary policy decisions affect the business in which I work. To undertake this task I will provide explanation of the fiscal and monetary policies. I will also explain what interest rate is and what could be possible changes on it. Additionally, I will explain how both policies could make changes in employment level. Fiscal policy
Economic climate is essential to be controlled within every single county because this helps control important activities within the particular country. All countries where economy is developed created and follow polices which ensure that money spent by government are used in an appropriate way. Those policies are known as fiscal and monetary policies.
Fiscal Policy
Fiscal policy could be defined as a legislation which was introduced by government to control the economy. The fiscal policy control and affects public taxation, public expenditure and borrowing money. Fiscal policy includes direct and indirect taxation, public finances, public sector borrowing, pre-budget report and redistribution of income. The purpose of fiscal policy is to monitor, control and support economy as a whole.
(Ref.http://www.investopedia.com/terms/f/fiscalpolicy.asp#ixzz1nhAdVG74)
Taxation
Taxation could be defines as a collection of money by government from their citizens and corporation businesses to found operational expenditure of the country. Changes in taxation would have a large influence on economy because amount of obtained money could be spent for different purposes or needs of the country. Taxation could be divided into two main types which are direct and indirect taxation.
(Ref. Book: Business level 3, Book Publisher: Edexcel Page: 300 Author John Bevan)
Direct Taxation
This particular type of taxes is paid by population and businesses on their income and profit. If the amount of income is higher than