Applied Economics Essay Example | Topics and Well Written Essays - 250 words

employ Economics - Essay ExampleConcerning the cardinal countries in question it is evident that the rate of growth of the plebeian internal product varies from one country to another (The world bank, 2014). found on the comparison among the foursome countries it is apparent that a high volume of Money at LCU corresponds with a low gross home(prenominal) product and a low volume of capital at LCU corresponds with a high gross domestic product. Money at LCU is one of the significant economic indicators since it refers to the money that is in circulation (Econstats, 2014). In this case, financial performance assess provide have a direct impact on the money at LCU. In this case, financial accomplishment tax will lead to a decrease for money at LCU. Based on the relationship between money at LCU and GDP a reduction in the money at LCU will raise the rate of GDP for a given country. Consequently, this will have a reduction in money at LCU will lead to reduction in inflation si nce it will reduce the spending habits of residents in a country. On the other hand, an increased local currency building block volume will increase money supply, which may lead to inflation (Eisenstein, C. 2011, 295).In conclusion, an analysis of the four data variables Inflation, money at its local currency unit (LCU), and revenue collected form tax and the gross domestic product outlines that financial transaction tax can have an impact on the economy of a country. Because financial transaction tax can regulate the money supply of a country, it can have an effect on the economic activities of a country. As a result, financial transaction tax can be used to stabilize economic conditions of a