Sunday, May 24, 2009

Unit 2 Australian tax rebates as a fiscal stimulus

This BBC article explains the Australian govt's latest attempt to stimulate the economy, a $700 handout to all citizens

http://news.bbc.co.uk/1/hi/world/asia-pacific/8065525.stm

a) Explain the intended effect on the Australian economy of this action
b) To what extent is the effect on the Australian economy likely to be successful?

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