Socialism is an economic philosophy which develops as an answer to the different problems presented by capitalism. Advocates of this philosopy claim that unchecked capitalism only deals with short-term goals, such as making profit, so long-term plans in infrastructure, workers, environment, among others, are not considered. Different varieties of socialism tend to strongly disagree with one another, but they all agree on the fact that capitalism, if left unchecked, constitutes a great danger to the economy of a country.
Leninism is a political theory developed by <em>Vladimir Lenin</em>, which comprises both political and economic theories, developed from Lenin's interpretation of Karl Marx's theories. He proposed the organization of a <em>Revolutionary Vanguard Party </em>and the achievement of a Dictatorship of the Proletariat as a prelude to the establishment of socialism. His idea involved turning the working classes against their class enemies.
Social Democracy is a political, social and economic theory that supports interventions to promote social justice. Social democracy originated as a peaceful transition from capitalism to socialism. This theory is associated with Keynesian economics - which advocates the intervention of the government in market economy, state interventionism, and the welfare state. It praises commitment to fighting inequality, oppression of underpriviledged groups, and poverty.
Answer:(A) This would be an extraordinary call.
Explanation:
Extraordinary call also known as extraordinary redemptions refers to redeeming the bonds issued but not used as per scheduled use; which means the bond that was used in a way that result into a nontaxable bond interest becoming taxable or when a project that was being financed experiences a disastrous situation in which the project can't continue as it was scheduled or get demolished like the project above in which part of the bridge collapsed. Extraordinary calls occur usually in municipal bonds in which the project financed is aimed at improving the community service but failed to live up to that.
An extraordinary redemption means the people who gave the bond to the company can redeem it based on the circumstances that have distrupted the project from the initial discussed schedule .
<u>The correct order for the steps that show how contractionary fiscal policies work would be the following</u>:
-Government increases tax rate
-Inflationary pressure decreases
-Consumers have less money to spend
-Producers manufacture fewer goods
Contractionary monetary policy is often applied <u>when the economy is suffering from inflationary pressure</u>. The central bank (U.S. Federal Reserve) will <u>slow down the monetary supply</u>. In turn, this raises the cost of borrowed money, which <u>decreases Gross Domestic Product and inflation</u>. Some negative side effects could be a higher unemployment rate.
Hope this helps!
