How does inflation reduce government and personal debt?
The government can reduce inflation with the help of both fiscal and monetary policy. An effective combination of these policies to reduce inflation would be to _______ and _______ Increase taxes; lower the reserve requirement ratio Increase taxes; sell government bonds Decrease taxes; buy government bonds Decrease government spending; lower discount rate
What item or product does the government sell? How does the government get money to spend? How do taxes fit into fiscal policy and if taxes cannot be raised, what does that mean for the debt level of the US? Are the bonds from the debt sold out of the New York Fed? Who are the bonds sold to?
IS-LM What combination of policies would best reduce inflation? a) Increase taxes, sell government bonds b) Decrease taxes, buy government bonds c) Decrease taxes, lower the reserve ratio d) Decrease government spending, lower the discount rate e) Increase government spending, raise the discount rate Use the IS-LM model. Your policy instruments are: Taxes, Government Spending, and the Money Supply. Describe a policy or set of policies that achieve the following objectives. Your answer should include a diagram to show how...
2. (1 point) Suppose the government increases its purchases. How does this change affect the Phillips curve? Does this cause a higher inflation? If so, what type of inflation is this, cost push or demand pull? 3. (1 point) Suppose the government raises the minimum wage. How does this change affect the Phillips curve? Does this cause a higher inflation? If so, what type of inflation is this?
question 1list and explain the policy tools the Federal Reserve can use to reduce inflationquestion 2list and explain the fiscal policy tools the government can use to reduce inflation
If the Fed was trying to reduce demand-pull inflation, it might A. sell government securities, lower reserve requirements and lower the discount rate. B. sell government securities, raise reserve requirements and raise the discount rate. C. sell government securities, lower reserve requirements and raise the discount rate. D. buy government securities, lower reserve requirements and raise the discount rate.
QUESTION 7 Most government entities (federal, state and local) increase spending from one year to the next How does this affect Aggregate demand, GDP and inflation? QUESTION 7 Most government entities (federal, state and local) increase spending from one year to the next How does this affect Aggregate demand, GDP and inflation?
Now, suppose there is an increase in government spending. How would this change inflation and unemployment rate? In other words, would inflation and unemployment rate increase or decrease as a result of an increase in government spending?
inflation may make taxpayers worse off if the government does not adjust the tax brackets accordingly explain why
How does the DoD (Dept. of Defense) view personal security practices and procedures for employees at government contractors?