Government policies affect market economies in numerous ways. The largest areas of government intervention in the economy are through Fiscal and Monetary Policy. Fiscal Policy is when the government decides to use revenues obtained through taxation to influence the economy. An example of this is when the US Government bailed out failing financial institutions in 2008 after the financial collapse by using citizens tax dollars to influence the economy. Monetary policy is when the government uses control of the money supply to influence the economy. An example of this is when the US Government buys or sells U.S. Treasury bonds at different rates to increase or decrease the amount of money in supply which influences interest rates and the overall economy. Another example by which the U.S. Government influences the "free market" is by imposing tariffs and quotas on US imported goods. These are essentially barriers or taxes on goods entering the U.S. Market. An example of this could be a 5% Tax on (x) good that is imported from China.
East Germany, Poland, Hungary, Romania, Bulgaria, and Yugoslavia resisted Soviet control despite being a communist nation
Explanation:
- Khrushchev's policy of "coexistence" with the West did not mean that he was willing to recognize the peace settlement in Germany.
- he was determined to change it in favor of the Soviet Union and its East German satellite
- The Western powers refused the plan because the abolition of the U.S. "nuclear umbrella" would not leave NATO forces.
- both the Soviet and East German governments still continued to achieve the goal of a united, Germany under communist control.
- there was also a significant increase in academic and cultural contacts with the West.
Answer:
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