Explain Fiscal Dominance

question 35

Essay

Explain fiscal dominance.

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Definitions:

Consumer Surplus

The split between the comprehensive sum consumers are prepared to offer for a good or service and the sum they truly pay.

Demand Curve

A graphical representation that illustrates the relationship between the price of a good and the quantity of it that consumers are willing to buy.

Equilibrium Price

The price at which the quantity of goods suppliers are willing to sell equals the quantity consumers are willing to buy, leading to a balance of demand and supply.

Consumer Surplus

The variance between a consumer's maximum price readiness for a product or service and the real payment made.