Homework Answers
Option 1. Continual budget deficit leading to high public debt
Explanation: When the budget deficit is continuously high, it reduces the effectiveness of government spending because the inflation tends to be high.
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Question 6 0.2 pts The effectiveness of expansionary fiscal policy is limited when which of the...
Question 17 1 pts According to the Keynesian approach to fiscal policy The crowding out effect...
Question 17 1 pts According to the Keynesian approach to fiscal policy The crowding out effect occurs only when high inflation is present. The crowding out effect is a significant problem that reduces the effectiveness of expansionary fiscal policy. The crowding out effect is quite limited as the demand for private loans is low in times of recessions. The crowding out effect is a significant problem that reduces the aggregate demand.
Question 4 Which factor is an expansionary fiscal policy? A. an increase in taxes that reduces...
Question 4 Which factor is an expansionary fiscal policy? A. an increase in taxes that reduces the budget deficit and decreases consumption B. a decrease in government spending C. an increase in unemployment benefits D. an increase in the money supply that decreases interest rates > Moving to another question will save this response.
23. Suppose a government finances its expansionary fiscal policy by borrowing from the public. Joseph is...
23. Suppose a government finances its expansionary fiscal policy by borrowing from the public. Joseph is concerned that this will increase the demand for loanable funds, drive up interest rates, and leave less loanable money available for consumers and businesses. Joseph is concerned about the: A) boomerang effect. B) expansionary countereffect. C) ricochet effect. D) crowding-out effect. 24. Suppose the economy is growing at 4% a year, inflation is measured at 0.5% a year, and the federal deficit is relatively...
all please Question 7 6 pts involves decreases in government spending and increases in taxes, while...
all
please
Question 7 6 pts involves decreases in government spending and increases in taxes, while government spending and decreases in taxes. involves increases in contractionary monetary policy; expansionary monetary policy contractionary fiscal policy, expansionary fiscal policy expansionary fiscal policy; contractionary fiscal policy expansionary monetary policy, contractionary monetary policy Question 9 6 pts Which of the following is an example of automatic, expansionary fiscal policy? O Legislation passed to extend unemployment benefits longer than 6 months O Higher personal income...
6.) What are some of the limitations that reduce the effectiveness of fiscal policy to fully...
6.) What are some of
the limitations that reduce the effectiveness of fiscal policy to
fully stabilize the economy?
7.)
Identify each of the following as being an example of either
Expansionary Fiscal Policy or Contractionary Fiscal Policy:
Tax Cut and Jobs Act [TCJA], 2017.
An increase in subsidies to farms affected by agricultural
tariffs.
An increase in payroll tax rates
An increase in the childcare tax credit
8.) We are given the following information: Item Checkable Deposits Small Time...
Question 2 Explain how the effectiveness of contractionary monetary policy (dM Fiscal policy (dg <0) depends...
Question 2
Explain how the effectiveness of contractionary monetary policy (dM Fiscal policy (dg <0) depends on the magnitude of the response of NX to in r or dNX/dr. Make sure to provide your answer with the relevant mathematical equations, and economic interpretation. points) Question Two: Assume the following equations summarize the structure of an economy. с =C, +0.7(Y - T) са = 2,000 - 50 т * 150 + 0.15Y (M/P) 0.3Y - 10r M/P 3,000 2,000 -10r G...
Question 13 (3 points) Which fiscal policy is likely to reduce the government's budget deficit? Contractionary...
Question 13 (3 points) Which fiscal policy is likely to reduce the government's budget deficit? Contractionary fiscal policy Fiscal stimulus Expansionary fiscal policy O Automatic fiscal policy Page 13 of 30 Previous Page Next Page
Question 1 Fiscal policy will have its greatest impact if monetary policy is __________. contractionary expansionary...
Question 1 Fiscal policy will have its greatest impact if monetary policy is __________. contractionary expansionary accommodating opposing 3. When aggregate demand increases, firms with market power—like Walmart—are MOST likely to raise __________. prices output wages sales tax Question 4 The money supply fell during the Great Depression because __________. the monetary base also fell the public held less currency, and the banks held less excess reserves the public held more currency, and the banks held more excess reserves the...
Econ HW, please help! UTION # FISCAL POLICY NAME the mix of government spending and taxing...
Econ HW, please help!
UTION # FISCAL POLICY NAME the mix of government spending and taxing in order to balance the Fiscal policy is best defined as: uncontrolled government spending, altering the mix of govern budget every fiscal year. changes in govern macroeconomic goals. vernment spending and taxing for the purpose of achieving certain minimizing government expenditures over the fiscal year. , while reases in government spending and lower taxes represent decreases in government spending and higher taxe contractionary fiscal...
1. Which one of the following is not an example of expansionary fiscal policy? a. Increasing...
1. Which one of the following is not an example of expansionary fiscal policy? a. Increasing government spending on unemployment insurance b. Decreasing government spending on education c. Decreasing federal income tax rates d. Increasing government spending on the military e. Decreasing local property taxes 2. In recessions, tax revenues tend to decline and transfer payments like unemployment insurance and food stamps tend to increase, so these programs... a. increase unemployment. b. create budget surpluses during economic downturns. c. are...
Question 17 1 pts According to the Keynesian approach to fiscal policy The crowding out effect occurs only when high inflation is present. The crowding out effect is a significant problem that reduces the effectiveness of expansionary fiscal policy. The crowding out effect is quite limited as the demand for private loans is low in times of recessions. The crowding out effect is a significant problem that reduces the aggregate demand.
Question 4 Which factor is an expansionary fiscal policy? A. an increase in taxes that reduces the budget deficit and decreases consumption B. a decrease in government spending C. an increase in unemployment benefits D. an increase in the money supply that decreases interest rates > Moving to another question will save this response.
23. Suppose a government finances its expansionary fiscal policy by borrowing from the public. Joseph is concerned that this will increase the demand for loanable funds, drive up interest rates, and leave less loanable money available for consumers and businesses. Joseph is concerned about the: A) boomerang effect. B) expansionary countereffect. C) ricochet effect. D) crowding-out effect. 24. Suppose the economy is growing at 4% a year, inflation is measured at 0.5% a year, and the federal deficit is relatively...
all
please
Question 7 6 pts involves decreases in government spending and increases in taxes, while government spending and decreases in taxes. involves increases in contractionary monetary policy; expansionary monetary policy contractionary fiscal policy, expansionary fiscal policy expansionary fiscal policy; contractionary fiscal policy expansionary monetary policy, contractionary monetary policy Question 9 6 pts Which of the following is an example of automatic, expansionary fiscal policy? O Legislation passed to extend unemployment benefits longer than 6 months O Higher personal income...
6.) What are some of
the limitations that reduce the effectiveness of fiscal policy to
fully stabilize the economy?
7.)
Identify each of the following as being an example of either
Expansionary Fiscal Policy or Contractionary Fiscal Policy:
Tax Cut and Jobs Act [TCJA], 2017.
An increase in subsidies to farms affected by agricultural
tariffs.
An increase in payroll tax rates
An increase in the childcare tax credit
8.) We are given the following information: Item Checkable Deposits Small Time...
Question 2
Explain how the effectiveness of contractionary monetary policy (dM Fiscal policy (dg <0) depends on the magnitude of the response of NX to in r or dNX/dr. Make sure to provide your answer with the relevant mathematical equations, and economic interpretation. points) Question Two: Assume the following equations summarize the structure of an economy. с =C, +0.7(Y - T) са = 2,000 - 50 т * 150 + 0.15Y (M/P) 0.3Y - 10r M/P 3,000 2,000 -10r G...
Question 13 (3 points) Which fiscal policy is likely to reduce the government's budget deficit? Contractionary fiscal policy Fiscal stimulus Expansionary fiscal policy O Automatic fiscal policy Page 13 of 30 Previous Page Next Page
Econ HW, please help!
UTION # FISCAL POLICY NAME the mix of government spending and taxing in order to balance the Fiscal policy is best defined as: uncontrolled government spending, altering the mix of govern budget every fiscal year. changes in govern macroeconomic goals. vernment spending and taxing for the purpose of achieving certain minimizing government expenditures over the fiscal year. , while reases in government spending and lower taxes represent decreases in government spending and higher taxe contractionary fiscal...
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