Question

Can someone explain me the difference between expenditure-dampening and expenditure-switching policies?

Answer 1

Expenditure switching policy is a policy which government tends to switch the consumer's purchase on foreign goods to domestic goods

Whereas expenditure dampening policy is reducing the consumption of imported goods to ensure that the balance of payment of a country becomes better


http://wiki.answers.com/Q/Give_an_explicit_explanation_of_expenditure_switching_and_expenditure_dampening

Answer 2

Expenditure switching is when govt tends to switch the consumers from foreign to domestic...and dampening would be reducing the consumption of imported goods to ensure bop improvement...isnt that the same thing?

Answer 3

No.
Switching and reducing is different...
switching uses is expenditure switching.
and reducing something is different.

Answer 4

ohh okay thanks :)

Answer 5

No probs.