Economic Essay Example | Topics and Well Written Essays - 500 words

Economic - Essay Example These factors go on to achieve economic objectives, promote economic growth, and shape fiscal policies. The term ‘money’ includes paper money, coins and checking accounts. The demand and supply of such assets determine the interest rate in an economy. The equilibrium interest rate is determined by the point where real money supply equates the real money demand. The money supply is controlled by the central bank. Real money demand is influenced by the interest rate and is positively correlated with real GDP. Influencing and changing the interest rate from the equilibrium rate results in conversions from (to) interest bearing deposits to (from) money. This allows the government to influence money holdings by the public. Interest rates are also positively related to the price level in a country. Keeping all other factors constant, a rise (fall) in the real interest rates brings about a rise (fall) in the real GDP. Hence economic growth could be promoted through interest rat es and therefore economic objectives could be achieved. The money market shows the equilibrium interest rates while the foreign exchange market shows the exchange rate. Combining the two markets yields a money forex diagram.

Legal-business auto accidents Term Paper Example | Topics and Well Written Essays - 1250 words

Legal-business auto accidents - Term Paper Example Honda Motor Company, â€Å"where the court ruled that the regulation foreclosed the filing of injury suits under the state law by the people contending that manufacturers had made the wrong choice† (Liptak). II. Facts of the Case: Petitioner, Alexis Geier, was driving a 1987 Honda Accord, which collided in a tree and caused the petitioner serious physical injuries, despite the fact that the shoulder and lap belts were fastened at the time the accident happened. The car was not also equipped with airbags. Petitioner, together with her parents, sued American Honda Motor Company, Inc. before the District of Columbia tort law, on the ground that Honda negligently was remiss in its obligation as a car manufacturer for failure to set an airbag at the driver’s side. The Court dismissed the case on the ground that it was the discretion of Honda to whether or not install an airbag in its car models. Hence, this ruling concluded that it was not mandatory for the automakers to ins tall a passenger-side airbag, and shall not be liable for a personal injury case based on such ground. The Court of Appeals reaffirmed the decision of the District Court which resulted to a dismissal of the case. Thus, an appeal to the Supreme Court was filed by the petitioners. ... s in conflict with the existing provisions of FMVS 208 Act, particularly on the express pre-emption provision Ruling: The Supreme Court ruled that: With regard to the first issue, the court held that the ordinary principles of pre-emption shall not apply in the case of the petitioners. The provision contained in the Act states that the federal safety standard does not relieve a person from any liability on the basis of the common law. Hence, the petitioners are not precluded from setting up a claim against American Honda. The language of the provision clause enacted by Congress does not prohibit common-law actions. The spirit of the law must be followed and not its literal meaning of the law. In case of doubt, the intention of the law must prevail over the strict context of the law. Thus, â€Å"express pre-emption provision that excludes common-law tort actions gives actual meaning to the saving clause’s literal language, while leaving adequate room for state tort law to oper ate† (Cornell). For the second issue, the Court held that ordinary pre-emption principles apply in the case of the petitioners. In its decision, the Court anchored its conclusion on the basis of â€Å"the express pre-emption and saving provisions when taken together, shall create a â€Å"special burden,† which a court must impose â€Å"on a party† who claims conflict pre-emption under those principles. A â€Å"special burden† would also promise practical difficulty by further complicating well-established pre-emption principles that already are difficult to apply† (Cornell). In one of the dissent of the justices, one justice commented that if the â€Å"special burden† would be made applicable in such a case, where the state law penalizes the requirement of the federal law which is an absolute