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.
Answer:
The limits placed on the Federal Government are:
1) No exercise of powers not delegated to it by the Constitution.
2) No payment from the Treasury except under appropriations made by law.
3) All duties and excises must be uniform throughout the United States.
4) No tax or duty to be laid on articles exported from any state.
5) No appointment of a senator or representative to any civil office which was created while he was a member of Congress or for which the amount of compensation was increased during that period.
6) No preferences to the ports of one state over another in regulation or tax collection.
7) No titles of nobility to be granted by the U.S. government, or permitted to be granted to government officials by foreign states.
8) No bill of attainder or ex post facto law to be passed.
Answer:
Big busineesses support the economy to help provide the expences needed for a developing nation.
Explanation:
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