Tuesday, May 26, 2020
Unbiased Report Exposes the Unanswered Questions on Examples of Informal Essay Topics
Unbiased Report Exposes the Unanswered Questions on Examples of Informal Essay Topics Lies You've Been Told About Examples of Informal Essay Topics An individual should create the paper that will draw in readers' interest. Equally excellent examples, informal essays could possibly be obtained on the internet by employing a suitable search engine like Google. The principal purpose of social networks is to maintain communication between people, even when they're far apart. Also, you've got to take into account the interests of your readers. An informal direction of writing provides an excellent opportunity to write about anything you want. It needs to be noted an informal paper differs from the formal one in a manner that it's more personal. In the event you're not quite certain about the informal essay topic assigned to you, and being unable to extract enough info or develop ideas to include in the paper then get in contact with our customized essay writers today. An email i s an instance of an interactive writing, which means that we're writing to someone instead of just for somebody to read. Reading though samples will lower your time later on, as you will begin writing your essay with clear understanding how to compose your own paper. Based on the dearth of trust between Israeli and the hams, both groups have both refused to negotiate with one another hence a little act of provocation has the capability to escalate into something bigger. So, the very best thing to be carried out in such cases is getting in contact with the expert customized essay paper writing experts available nowadays. The examples I have located in the text help the reader to examine the issue differently, to estimate the seriousness of what is going on. You are going to receive unique texts, which will be finished in time. Why reading is crucial to turn into a thinking person. The conclusion of essay, that is the previous part, should become your opportunity to create your readers understand the entire point of your topic. Inability to compositionally structure an essay in compliance with the theme and the principal idea. Examples of Informal Essay Topics Explained Our experts are there to assist you once you will need an urgent essay. You can rely on the ideal essay help online. Upload your requirements and delight in the most dependable essay writing services. Regardless of what's the objective of your essay, there's a preset number of points you will be expected to tackle. Thus, it's extremely important to look after the phone carefully. On the contrary in regards to a formal essay then it has to be written in the right format and its topic ought to be chosen carefully to deal with an important matter. Since womankind exists, there have been plenty of discussions on the problems that have disturbed virtually every woman. It is all up to you to choose which issue to discuss. If you are in need of a particular language for your essays, that is no problem. The introductory paragraph will have a thesis statement and the theme needs to be grounded. There aren't any particular limitations on the structure of the informal essay. Observance of the fundamental principles and recommendations on writing will make an intriguing essay. There are various circumstances.
Tuesday, May 19, 2020
How Can We Deal with the Problem of Illegal Immigration Essay
How Can We Deal With The Problem Of Illegal Immigration? Being here as an illegal immigrant is a huge problem. Tax payerââ¬â¢s money pays for their medical bills, the jails, and deportation back to where they came from. Our jobs and identities are being taken away as well. Coming to the United States is seen as an advantage to get ahead in life for most other countries. When they take advantage of breaking the system it effects the citizens more so than it does them. There are several people who came here and worked hard to get their citizenship the legal way. When it seems the government is letting them get away with breaking the law it attracts more people to come here illegally. Illegal immigration refers to the action of peopleâ⬠¦show more contentâ⬠¦However, research indicates that the majority of the illegal immigrants go to their chosen destinations for the primarily economic and personal reasons, such as search for jobs opportunities and family reunification. It thus implies that by understanding the reasons as to why these people migrate illegally, the respective states may come up with executable measures to ensure that illegal immigration is no more. The best option for solving the issue of illegal immigration in an effective manner is by removing the incentives that draw the people into other states without following the recommended legal procedures (Hoffmeier, 2009). At first, the governments experiencing cases of illegal immigration need to enforce their laws of immigration and to crack down on those employers that hire illegal aliens. The governments should decide to make it a felony act for employing people without undergoing the proper channels of immigration and checking the applicantââ¬â¢s background (Gaines Kappeler, 2011). The only way of making illegal immigrants leave the countries under which they reside illegally is by making life difficult for them to keep on leaving there. For example, the governments should opt to ignore granting driverââ¬â¢s licenses, public schooling opportunities, food stamps and permanent employment to the people that reside in the states illegally. Choosing this option is essential because it is very hard to track and traceShow MoreRelatedThe Executive Order : President Obama s Immigration Reform1221 Words à |à 5 PagesPresident Obamaââ¬â¢s Immigration Reform In 1986 Ronald Regan signed into law the Immigration Reform and Control Act, an amnesty act that would alleviate the current immigration problems. Through this law, out of five million illegal immigrants, an estimated four million could have applied to become legal U.S. Citizens. This law was supposed to put a definite stop to illegal immigration into the United States. However, ever since the law was enacted, statistics show that the numbers of illegal immigrants inRead MoreImmigration Has Been A Pressing Issue In Society For Many1617 Words à |à 7 Pages Immigration has been a pressing issue in society for many decades and with the election of our new president, Donald Trump, the controversy has only been magnified. The act of immigration is leaving your home country and coming to live in a foreign country permanently. This can be a result of political unrest or war within an area causing a large number of people to immigrate to other countries with more opportunities. Also, it is a once in a lifetime chance for very poor families to go to a placeRead MoreThe Issue of Illegal Immigration in the US1087 Words à |à 5 Pages Americans today, know that there is a problem with illegal immigration. Everyday many illegal immigrants cross the borders. There are between twelve and twenty million illegal immigrants in America. (ââ¬Å"Scary Immigration Statisticsâ⬠1) The U.S. should make all illegal immigrants register or deport them to their original countries. The U.S. should also make a program so that the immigrants can get a license for legality. If the immigrants do not want to cooperate, then they cannot be in America. TheRead MoreThe Rights Of Illegal Immigration1690 Words à |à 7 PagesJuan worked for General Faucets and Plumbing and loved every minute of his job. There was only one problem that Juan was struggling with in America. Juan Guarintino was an illegal immigrant who had paid someone to smuggle him into the United States and make him a f ake visa card. Now, a few days ago, he shot a man for the twenty dollars in his pocket that way he could manage his chronic cocaine problem, but the police have caught wind of what has happened. When the police found out where he lives, theyRead MoreBorder Blues: the Dilemma of Illegal Immigration791 Words à |à 4 PagesBorder Blues: The Dilemma of Illegal Immigration By: Farai Chideya I. Research Question: Immigration is a rapid growing issue for the United States. For a long time people from other countries have been coming here to look for bigger and better things for themselves, as well as for their families. This article digs to the core of the issue, illegal immigration. Chideya wanted to know three things: 1) What is the reality behind the perceptions of Mexican Americans, 2) How do the residents of El PasoRead MoreAmerica s Melting Pot : A Nation Of The People1376 Words à |à 6 Pagespeople. Illegal immigrants have always been around, but have drastically increased in the last two decades. Because of this, legal American citizens are deprived of what is rightfully theirs. While immigration has often been a cause of turmoil over the past 200 years, it is only in the past several decades that immigration, in the form of those who enter the US illegally, has caused controversy, dividing people and sparking debate. What are the most important issues at stake and how do we solve themRead MoreIllegal Immigration Is A Problem That Affects All Americans964 Words à |à 4 PagesIn one way or another we are all immigrants, our ancestors came to America in search of the American dream and freedom of the promise land. Back in the late eighteen to early nineteen hundreds the government encouraged immigration. The reasoning for this was because America was growing and their territories were expanding they were in need of help with the continuing growth of our country. Ellis Island could see up right to over a thousand immigrants a day and they were welcome with open arms. AmericaRead MoreAmericans : Just Without The Right Papers893 Words à |à 4 Pagescontribution of immigrants can be seen in every aspect of our national life. We see it in religion, in business, in the arts, in education, even in athletics and in entertainment, there is no part of our nation that has not been touched by our immigrant backgroundâ⬠(President John F. Kennedy 1959). Like Presi dent John F. Kennedy many other Presidents, before and after him Republican and Democrat, have shared these ideals of freedom and opportunity for all. ââ¬Å"Si Se Puede (Yes we can,) Keep Our Families TogetherRead MoreHistorical Overview of Us Govts Role in Long Term Healthcare1173 Words à |à 5 PagesA Case Study: Why Illegal Immigration Is an Intergovernmental Mess and Will Remain So Debra Nance April 22, 2012 PMG 300 Critical Thinking Introduction: Along with religion and taxes, do not bring up illegal immigration at a dinner party unless you want heated discussions and grand exits along with lingering strained relationships. A discussion on illegal immigration leads to strong responses and strong emotions no matter what political party affiliation. There are those that blameRead MoreAn Analysis Of Barack Obamas Speech1167 Words à |à 5 Pagesconflict of illegal immigration. There have been an influx of illegal immigrants crossing the southern border and trying to thrive and achieve the American dream however people oppose that because illegal immigrants can pose a threat to the American country due to the number of drug cartels which run in Mexico. The United States of Americaââ¬â¢s former president, Barack Obama addresses the nation over the crises of immigration. Obama writes the speech because of the conflict of multiple illegal immigrants
Friday, May 15, 2020
Wednesday, May 6, 2020
Use of Monetary Policy and Fiscal Policy During The Great...
How can monetary policy and fiscal policy greatly influence the US economy? Keynesian economics says, ââ¬Å"A depressed economy is the result of inadequate spending .â⬠According to Keynesian the government intervention can help a depressed economy through monetary policy and fiscal .The idea established by Keynes was that managing the economy is a government responsibility . Monetary policy uses changes in the quantity of money to alter interest rates, which in turn affect the level of overall spending . ââ¬Å"The object of monetary policy is to influence the nationââ¬â¢s economic performance, as measured by inflationâ⬠, the employment rate and the gross domestic product, an aggregate measure of economic output. Monetary policy is controlled byâ⬠¦show more contentâ⬠¦Aggregate spending refers to consumer purchases, business and housing investment, government purchases of goods and services and exports net of imports . This is the second way to add up GDP. The Federal Reserve uses monetary policy to stimulate aggregate demand by expanding money supply and lowering interest rates, which increases households and firmsââ¬â¢ desired spending. Expansionary fiscal policy uses changes in taxes and government spending to affect overall spending. The fiscal and Monetary step taken in the last 18 months by the U.S. Federal Reserve, The U.S. Treasury Dept., The U.S. congress and the Presidents Bush and Obama were to help stabilize the U.S. economy. The policy response from the G.W. Bush is that there are three main parts to the fiscal policy stimulus. An individual tax that the Internal Revenue service sent out started in mid-2008. There were two business provisions that encourage investment during 2008 by increasing limits on expensing investment costs and accelerate depreciation of qualifying investments. The specific steps taken in early 2008 were the home owner purchases rebate and tax cuts. Obama presidencies after September 2008 financial crisis is as follows: Government spending expands automatically in recessions with the increase in unemployment insurance, welfare benefits, and other transfers to the jobless and the poor . Normally to hasten recovery include additional tax cuts toShow MoreRelatedMeg Guild . Mr.Bare . Economics . 31 April 2017. Market942 Words à |à 4 PagesMacroeconomics Policy The recession in 1974ââ¬â1975 and two other back to back recessions in 1979ââ¬â1982, which sent the employment rate to 11%. The inflation rate rose into double digits then plummeted. A period of Great Moderation came after 1985, and the recession of 1990ââ¬â1991 was more manageable than the previous recession. Unfortunately, this period of tranquility was followed by the Great Recession which caused turmoil in the U.S economy. The consensus that manifested itself during the Great ModerationRead MoreRunning Head: Great Recession 1. Great Recession5. . .884 Words à |à 4 PagesRunning head: GREAT RECESSION 1 GREAT RECESSION 5 Great Recession Name Institution Great Recession There are times when a nation undergoes economic hardship for a long or short period of time. The recession is the term used by economists to define this period, it is a time when the nation?s economic GDP is low for more than two quarters consecutively (Beckworth, 2012). Recession often results in plunges in the stock market, unemployment, housing market, and a decrease in the qualityRead MoreThe Great Recession Of 20081123 Words à |à 5 Pages The Great Recession of 2008 Debra Turner ECON 102 Professor, Shahrokh American Public University September 26, 2015 ââ¬Æ' The Great Recession of 2008 Recession is a significant decline in real GDP, real income, employment, industrial production, and wholesale/retail sales, which last more than a few months. (Economic recession, n.d.) Further, a recession typically begins after a peak in the economy and ends at the trough, however, ââ¬Å"the start and end dates are determined by the Business Cycle DatingRead MoreThe Great Recession Fiscal Policy: Analyzing Problems and Solutions1429 Words à |à 6 Pagesof the Great Recession of 2007 to 2009, the United States government implemented various fiscal policies in an effort to stimulate the economy. How the government responded as well as how those responses will affect the U.S. economy into the future are the focus of a proposed research study. In order to ensure an appropriate focus for the proposed research study, problems in existing literature must be evaluated. This paper is structured as follows. In order to better understand the Great RecessionRead MoreDo Fiscal and Monetary Policy Stimulate the Economy? Essays1467 Words à |à 6 Pagesexpansion (until peak point is reached), a decreasing point into recession, and a rebound from recession to recovery. These events must be examined closely because it is possible for the economy to hit extreme highs and extreme lows which can abruptly change the flow of the cycle. For example, if overlooked and the economy hits an extreme low, considered a recession it would be extremely difficult for the economy to recover from this recession and would have to face severe consequences such as enormousRead MoreGovernment Reactions during the Great Recession862 Words à |à 3 PagesMonetary Policy and Fiscal Policy: Government Reactions during ââ¬Å"The Great Recession Monetary policy and fiscal policy can greatly influence the US economy. Keynesian economics says, ââ¬Å"A depressed economy is the result of inadequate spending. Keynesian argued that government intervention can help a depressed economy through monetary policy and fiscal policy. The idea established by Keynes was that managing the economy is a government responsibility. Monetary policy uses changes in the quantity ofRead MoreThe Federal Reserve And Expansionary Monetary Policy1657 Words à |à 7 Pagesstable, like during a recession, the American people turn the government and demand that they fix whatever problem is occurring. The government can handle the economy in a recessionary period in one of two ways: expansionary fiscal policy or expansionary monetary policy. The sector of the government that handles the economy using these policies in a recession is the Federal Reserve. The best course of action to get the United States out of a recession is to use expansionary monetary policy. In orderRead MoreThe Great Recession Lasted From December Of 2007 Until1229 Words à |à 5 PagesThe Great Recession lasted from December of 2007 until June of 2009, making it the longest recession since World War II. During this time, gross domestic product (GDP), inflation, unemployment, and interest rates were all greatly affected. The previously mentioned metrics are used to compare todayââ¬â¢s economy to the economy during the Great Recession to see how the United States has rebounded since 2009. Monetary and fiscal policies were also implemented to combat the recession, and their effects determineRead MoreEffects of Business Cycles1731 Words à |à 7 PagesIntroduction In general the economy tends to experience different trends. These trends can be grouped as the business/trade cycle and may contain a boom, recession, depression and recovery. A business/trade cycle (see figure 1) is the periodic but irregular up-and-down movements in economic activity, measured by fluctuations in real Gross Domestic Product (GDP) and other macroeconomic variables. Samuelson and Nordhaus (1998), defined it as ââ¬Ëa swing in total national input, income and employmentRead MoreInsight From Theory And History1638 Words à |à 7 Pagesmost influential theorist that have come to the fore front have been John Maynard Keyes, with his theory of Keynesian economics and Milton Friedman with his idea of monetarism. While both economists have had major influence on modern day economic policies, both theorist have contradicting ideas, this paper will aim to take a look at both Keynes and Friedmanââ¬â¢s theories respectively and look at the application of these theories in the real world. John Maynard Keynes theory of economics rose to prominence
A Prayer For A Catholic - 955 Words
For I was hungry and you gave me no food, a verse in the bible I remember. One can say they love God but do they love others? Coming to mass only once or twice a year does not make one a catholic. Making a monetary donation does not make one a catholic. Being able to recite prayers does not make one a catholic. Being a Catholic is about participating in mass, how we say our prayers, and contributing time and talent. Jesus was put on the earth to show the people that we should love each other and reach out to those in need. Being an active catholic gives back to the community. A true catholic is an active catholic who lives in the way of Jesus. Mass is a gathering in Godââ¬â¢s house to celebrate the Liturgy of the word and Holy Eucharist. Everyone is invited to mass regardless if you have been baptized. Many catholics attend mass every sunday. However, only active catholics listen to the liturgy while inactive catholics zone out or fall asleep. There are some catholics known as CEO which means they only attend Christmas Easter mass Only. Every church is different some have a small amount of gathers or a large amount of members. Other churches may celebrate after mass every sunday while others only once a month. Finding the right church is key to enjoying mass as well as being active within the church. Finding a good time to attend mass is also important in becoming an active member in the church, many members go multiple times a week however if the attendee can t make it thereShow MoreRelatedThe Prayer Of A Catholic Mass1393 Words à |à 6 PagesGoing to a catholic mass was a unique experience especially going with peer s even though we got there about two or three minutes after the start of service. Worship was as a community more than just a group of people singing into a microphone. Holy water that gives after attending the service as someone I knew that grew up Catholic. After further researching found out it would be similar to the blood of Jesus that washed away our sins. The priest provides the blessing over the water which bringsRead MorePrayer and Fasting: Traditions That Cross the Barriar of Religions1441 Words à |à 6 Pagesfaith, canonical prayer, charity, observance of Ramadan, and pilgrimage to Mecca. Christianity is founded on Jesus Christ and the faith of the apostles, but both have teachings on prayer, and fasting. These two religions are very distinct and sacred in their own practice, but virtues are universal and not restricted to any particular religion. Prayer is important for all religions. It is one of the few things which all of the religions of the world have in common. Though prayer is a common factorRead MoreBuilding Faith Community From Day One924 Words à |à 4 PagesCommunity From Day One As an ââ¬Å"architectâ⬠in a Catholic school, the principal bears the load of responsibility for setting the tone for each school year and ââ¬Å" as an architect of Catholic culture, is to connect the schoolââ¬â¢s core values and beliefs to Christ and the Gospel intentionally, deliberately, and continually.â⬠(Cook, 2001, p. 20) The principal, being the spiritual leader of the school, helps support the Catholic schoolââ¬â¢s mission and the xxxx of the Catholic identity of the school. They must leadRead MoreThe Catholic And Catholic Church1561 Words à |à 7 PagesCatholic Mass In this spring break, I followed my Christian friend and visited a Catholic Church located in Seattle and I had a chance to witness on how they conduct their worship in the form of Mass. The Catholic Church has many practices and rituals such as Last Rites, praying the Rosary, receiving Communion, Confession, Baptism, and Mass according to the members of this church. Nonetheless, the Mass is the most crucial ritual as they consider it as the Lord`s Supper. The Mass is the Catholic`sRead MoreRoman Catholic Essay652 Words à |à 3 PagesE it Caribbean Examinations Council (CXC). School Based Assessment (SBA) RELIGIOUS EDUCATION Roman Catholic: Worship Name of Candidate: Andrew Jevaughn Jerome Tibby School: St. Georges College Centre #: Candidate #: Teacherââ¬â¢s name: Ms. McKay Year of Exam: 2014 ACKNOWLEDGEMENT The researcher would like to thank God firstly for giving him the strength to complete this project. A big share of gratitude is given to my teacher for helping me to choose such a comfortable topic. The researcherââ¬â¢sRead MoreEssay on Christianity And Buddhism Compared1486 Words à |à 6 PagesBuddhist and Christian Prayer: A Comparison in Practice and Purpose At first glance the traditions of Christianity and Buddhism appear very different from each other. One centers around a God that was at one time physically manifest on earth in the human form of his son Jesus Christ, the other primarily worships a historical figure that gained divine status through enlightenment. This assessment is broad at best, especially in the case of Buddhism where the Theravada and Mahayana traditionsRead MoreThe St. James The Apostle Catholic Church1265 Words à |à 6 PagesThe St. James the Apostle Catholic Church in McDonough, Georgia was my second church visit. I visited the Catholic Church on Sunday, November 15, 2015 at the eleven oââ¬â¢clock service. The church is located on 1000 Decatur Rd. McDonough, GA 30253. I assumed that the Presbyterian Church was very different from my community church but the St. James the Apostle Catholic Church experience was no comparison to the Covenant Presbyterian Church whatsoever. The first thing that I have noticed about the churchRead MorePrayer1576 Words à |à 7 PagesDoes prayer heal? Prayerà is anà invocationà or act that seeks to activate aà rapportà with aà deity, an object of worship, or a spiritual entity through deliberate communication. Prayer can be a form of religious practice, may be either individual or communal and take place in public or in private. It may involve the use of words or song. Whenà languageà is used, prayer may take the form of aà hymn,à incantation, formalà creed, or a spontaneous utterance in the praying person. There are different formsRead MoreEastern Orthodox Vs Roman Catholic1475 Words à |à 6 PagesEastern Orthodox vs Roman Catholic In the funeral world there are a lot of different styles of funerals. For example, Eastern Orthodox and Roman Catholic funerals. Both very different, but at the same time they have several things in common. In funerals there is an abundance of things to compare and contrast. We will be looking at different ways the notification of death is handled in both of these religions, removal, embalming, dressing/casketing, visitation requirements/rituals, and interment orRead MoreHow Religion Has Influenced The Life Of A Nun1294 Words à |à 6 Pagesââ¬Å"By this everyone will know that you are my disciples, if you have love for one another?â⬠(Jn 13:35)What is a committed religious life for being a Catholic sister or nun. Catholic sister and nuns have a different variation of lifestyle, ministries and callings. All community has its own peculiar identity and flavor, this is because there are no two association, as there is no two nuns that are the same. As we watch movies about nuns w e sometimes predict sisters and nuns to be living a highly ordered
Disability act in affect Essay Example For Students
Disability act in affect Essay NHTSA Unveils New Brochure to Help Those with DisabilitiesSeeking Use of Adapted Vehicles The National Highway Traffic Safety Administration (NHTSA)unveiled its consumer brochure to help persons with disabilities in the market for an adapted vehicle to take advantage of new technology to increase their mobility. President Clinton and Vice President Gore are committed to removing barriers for people with disabilities so they can take advantage of the great bounty of opportunities in America, Secretary Slater said. This new brochure is an important step in helping persons with disabilities to gain greater freedom to get where they need to go. More than 35,000 copies of the 13-page full-color booklet, known as Adapting Motor Vehicles for People with Disabilities, will be distributed free of charge in the booklets first printing. The brochure has also been posted on NHTSAs web site, http://www. nhtsa.dot.gov . This new brochure will help more Americans with disabilities navigate the often confusing process of acquiring and using adapted vehicles safely, said Acting NHTSA Administrator Rosalyn G. Millman. The booklet, first released today at the ninth annual conference of the National Mobility Equipment Dealers Association (NMEDA), provides a step-by- step process to help consumers evaluate their needs, select the right vehicle and choose a qualified dealer to modify the vehicle. It also assists those who need training to use and maintain an adapted vehicle. In addition, general information is included on cost savings, licensing requirements and organizations to contact for help. While the brochure focuses on drivers of modified vehicles, each section also contains suggestions for those who transport passengers with disabilities. There are more than 380,000 vehicles on the road today that have been specially adapted with new technology to afford greater mobility to persons with disabilities. Such equipment includes mechanical and powered hand controls (for gas and brakes), joystick steering, wheelchair lifts and low- effort braking systems. Copies of the booklet will be distributed free of charge through NHTSAs partnerships with such key organizations as NMEDA, the Association of Driver Rehabilitation Specialists, the Department of Veterans Affairs and AAA. In addition, automakers will make the brochure available to their customers. Bibliography: SOURCE National Highway Traffic Safety Administration CO: U.S. Department of Transportation; National Highway Traffic Safety Administration; Association of Driver Rehabilitation Specialists; National Mobility Equipment Dealers Association; Department of Veterans Affairs; American Automobile Association .
Tuesday, May 5, 2020
Macroeconomic Patterns And Monetary Policy -Myassignmenthelp.Com
Question: Discuss About The Macroeconomic Patterns And Monetary Policy? Answer: Introducation In the current scenario, a steep fall in the GDP of Australia can be evident in the last two years. Additionally, the increase in the level of unemployment has made it difficult for the Australian Government to manage proper economic balance. The primary reason for the economic downturn in Australia is the downfall in business investment (Tuan, 2012). Moreover, the government budget deficits have become another major issue for the Australian economy. However, Mr. Malcolm Turnbull took several initiatives to cut down government expenditures in all aspects. As a result of the government spending cut down, an unwillingness to invest in the country can be evident after the announcement of the policy. Later on, the Reserve Bank of Australia reduced the cash rate in the country in order to meet the crisis situation and promote business investment in the economy (Reserve Bank of Australia, 2017). It can be seen through the previous data that the Reserve Bank of Australia has kept the offici al cash rate at an historic low level of 1.5 percent for consecutive 13 months. On the basis of the above information, the paper has been developed to answer two major points that are the impact of a fall in the interest rate over the business investment in the nation and the after effect of increase in business investment over the aggregate demand curve, price level and real GDP of the nation. During the period of economic downturn, the Central Banks of most of the nations including different developed as well as developing countries have reduced the benchmark cash rate in order to boost the economic growth and maintain stability in the market. In the same manner, the initiative taken by the Reserve Bank of Australia (RBA) to reduce the cash rate to a historic low of 1.5 percent can be considered as an essential part of the monetary policy of the nation (Reserve Bank of Australia, 2017). According to the Australian Bureau of Statistics (2017), the RBA has trim down the interest rate from 4.25 percent in the year 2012 to 1.5 percent in the year 2016 (Tradingeconomics.com, 2017). On the basis of the interest rate cut in the Australian market, an increase in the flow of money can be seen in the country. A figure has been given below in order to present the previous five years interest rate of Australia for further consideration. Due to the fall in the interest rate, the cost of taking loan will reduce in the Australian market that will enable the entrepreneurs to low interest loans to invest the money in new businesses (Catala?n, Guajardo and Hoffmaister, 2008). Furthermore, the low interest loans will increase the demand for credits that will further leads to increase in the flow of money in the open market. Additionally, the fall in the interest rate leads to a decrease in the return from bank savings (Catala?n, Guajardo and Hoffmaister, 2008). In other words, the interest earned from savings accounts and fixed deposits will decrease due to the fall in the cash rate that will enforce the common public to utilise their money in the form of business investments in place of keeping them in the bank accounts. Hence, it can be seen that the fall in the interest rate leads to increase in the flow of money that promotes business investment in the economy. Furthermore, the fall in the interest rate enables the entrepreneurs to take low interest credits that increase the purchasing power of the consumers. For instance, if an individual gets low interest loans, the price of an asset become cheaper for the buyer (Shaffer, 2017). The buyer has to pay less amount of money as compared to the previous amount with high interest rate. The increase in the purchasing power increases the demand in the market and provides business growth opportunities (Shaffer, 2017). Hence, it can be seen that the fall in the interest rate will increase the aggregate demand in the market due to increase in the purchasing power and enforce the small as well as big entrepreneurs to invest more money in the market. The discussion has revealed that lower rate of benchmark interest rate can increase substantial investments in business in Australia. Assuming the concept, it is required to analyse the impact of increased business investment on aggregated demand curve, Real Gross Domestic Product (GDP), and Price Level in the economy. In the underlying section, the effect of the rise in business investment on the three aforementioned economic aspects has been demonstrated providing a figure. Convincingly, higher business investment due to lower interest rate will certainly increase the monetary flow in the Australian economy. Clearly, higher investment in business will lead to higher income status of the Australian citizens. As a result of the scenario, the purchasing power of the common people will be boosted (Phan, 2014). Evidently, the higher purchasing power of people will mostly contribute towards shift in aggregated demand curve towards the right side. As shown in above figure, the aggregated demand curve will be moved from AD to AD1 pointing to a growth in aggregated demand scenario. Effectively, it can be stated that increase in capital flow and business investment due to lower benchmark interest rate will influence the buying power of the Australian. Hence, the aggregated demand will increase. However, as shown in the above figure, aggregated supply of the economy will be constant in the short-term period at AS. In terms of analysing the effect of higher business investment on Australian GDP, higher aggregated demand will undoubtedly result in an increase in aggregated consumption. Evidently, due rise in consumption of goods and services, the Gross Domestic Product of the economy will be boosted (Scott, Rabanal and Kannan, 2009). As shown in the above figure, the increase in aggregated demand from AD to AD1 has eventually contributed towards increase in the real GDP from Q1 to Q2. For better understanding of the event, another theoretical concept can be demonstrated. Due to rise in flow of capital, common people will receive more money on hand to spend. Hence, rise in aggregated demand will influence higher real GDP of the nation. On the other hand, the impact of the increase business investment on Price Level scenario of the economy will need to be described. According to the theoretical concept of demand and supply, lower benchmark interest rate will mean significant smaller interest on borrowing. Hence, the cost of borrowing will be reduced for the business firms (Cobham, 2015). Inspired by the scenario, the firms will borrow more money from the financial institutions such as banks for business growth and developed. Therefore, the monetary flow in the market will be increased in a massive way. Due to the event, the aggregated price level in Australian economy will significantly show an increase (Fender, 2012). As illustrated in the above figure, an increase in the aggregated demand from AD to AD1 will lead to the rise in the aggregated Price Level of products from P1 to P2. Furthermore, the increased price level can cause rise in inflation as well. The entire analysis has revealed that the decision of the RBA to maintain a lower benchmark interest rate can deliver positive impact on the overall economic status. Certainly, influenced by the lower rate of interest, the firms and business organisations will be encouraged to borrow more money leading towards higher business environment. Apart from that, higher investment in market will provide an increase in the income status of the Australian as well. As an outcome of the scenario, the people will be influenced to spend more and purchase more. Conclusively, the situation will lead to higher aggregated demand, Real Gross Domestic Product, and Price Level of Products in Australian economy. References Catala?n, M., Guajardo, J. and Hoffmaister, A. (2008).Global aging and declining world interest rates. 4th ed. Washington, D.C.: International Monetary Fund, IMF Institute and European Dept. Cobham, D. (2015). Monetary Analysis and Monetary Policy Frameworks: Introduction.The Manchester School, 83, pp.1-4. Fender, J. (2012).Monetary policy. 3rd ed. Chichester, West Sussex: Wiley. Forstater, M. (2016).Economics. 5th ed. London: A. C. Black. Phan, T. (2014). Output Composition of the Monetary Policy Transmission Mechanism: Is Australia Different?.Economic Record, 90(290), pp.382-399. Reserve Bank of Australia. (2017).Cash Rate | RBA. [online] Available at: https://www.rba.gov.au/statistics/cash-rate/ [Accessed Oct. 2017]. Scott, A., Rabanal, P. and Kannan, P. (2009).Macroeconomic Patterns and Monetary Policy in the Run-up to Asset Price Busts. 3rd ed. Washington: International Monetary Fund. Shaffer, L. (2017).Reserve Bank of Australia keeps benchmark rate unchanged at 1.5 percent. [online] CNBC. Available at: https://www.cnbc.com/2017/04/04/reserve-bank-of-australia-keeps-benchmark-rate-unchanged-at-1-5-percent:-reuters.html [Accessed Oct. 2017]. Tradingeconomics.com. (2017).Australia Interest Rate | 1990-2017 | Data | Chart | Calendar | Forecast. [online] Available at: https://tradingeconomics.com/australia/interest-rate [Accessed Oct. 2017]. Tuan, B. (2012). Monetary Policy Surprises and Interest Rates: Evidence from Australia.SSRN Electronic Journal.
Subscribe to:
Posts (Atom)