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Unformatted text preview: form of giving out a loan (such as bailout) or giving out a big contract to the firm(s). Say if the governments of HK and Singapore want to encourage growth in the financial sector, they may give some government funds for these firms to invest (firms have more business => hire more workers => growth). 3. Expansionary fiscal policy - cut taxes. For similarly ideas to the previous policy, the government may reduce corporate tax rate. Then firms will have more profit => hire more worker and more investments => growth. Again, this idea is used by government all around the world, certainly HK and Singapore....
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This note was uploaded on 02/17/2012 for the course ITCO 101 taught by Professor Gugenhiem during the Spring '12 term at AIU Online.
- Spring '12