How are expansionary and contrctionary policy similar
Homework Answers
Expansionary policies and contractionary policies are similar in a way that both policies are discretionary in nature and come with the lag effects. Both of these policies affect the consumption spending and demand by manipulating the disposable income available to the households, if these policies are fiscal policies. If these policies are monetary, then it is affecting money supply supply and changing employment and growth. Further, expansionary and contractionary policies, both work to achieve potential level of output and target the same level of inflation rate and or interest rate if it is monetary policy.
How does an increase (refer to it as EXPANSIONARY FISCAL POLICY) in fiscal policy affect consumers'...
How does an increase (refer to it as EXPANSIONARY FISCAL POLICY) in fiscal policy affect consumers' ability to purchase the iPhone 6 plus?
how does an expansionary monetary policy influence the slope of yield curve
how does an expansionary monetary policy influence the slope of yield curve
the possible answers: How will an expansionary fiscal policy affect exchange rates, via interest rates? Expansionary...
the possible answers:
How will an expansionary fiscal policy affect exchange rates, via interest rates? Expansionary Fiscal Policy select answer select answer Competitiveness decreases Competitiveness increases The domestic currency depreciates The domestic currency appreciates Income decreases Income increases Interest rates decrease Interest rates increase Imports decrease Imports increase Price level decreases Price level increases Trade deficit decreases Trade deficit increases
Explain how expansionary fiscal policy (fiscal stimulus) sometimes crowd out investment.
Explain how expansionary fiscal policy (fiscal stimulus) sometimes crowd out investment.
Why may an expansionary monetary policy be less effective than a restrictive monetary policy? the Federal...
Why may an expansionary monetary policy be less effective than a restrictive monetary policy? the Federal Reserve Banks are always willing to make loans to commercial banks which are short of reserves. commercial banks may not be able to find loan customers. fiscal policy always works at cross purposes with an expansionary monetary policy. changes in exchange rates complicate an expansionary monetary policy more than it does a restrictive monetary policy.
Classify each statement as an example of expansionary fiscal policy, contractionary fiscal policy, or not an...
Classify each statement as an example of expansionary fiscal policy, contractionary fiscal policy, or not an example of fiscal policy. Expansionary fiscal policy Contractionary fiscal policy Not an example of fiscal policy Answer Bank a decrease in government spending an increase in corporate bonds purchased a decrease in transfer payments a decrease in the money supply a decrease in taxes an increase in the money supply a decrease in the unemployment rate an increase in tax rates an increase in...
Think about the two types of monetary policy: expansionary and contractionary. Using what you have learned...
Think about the two types of monetary policy: expansionary and contractionary. Using what you have learned about open market operations, determine whether the noted actions below coincide with expansionary monetary policy or contractionary monetary policy. In a few sentences explain how. Action: Government securities are sold by the Fed. Expansionary Contractionary Action: The federal funds rate decreases. Expansionary Contractionary Action: The money supply increases. Expansionary contractionary
In your opinion, between the expansionary monetary policy and the contractionary monetary policy, which is more...
In your opinion, between the expansionary monetary policy and the contractionary monetary policy, which is more effective, and why?
Illustrate expansionary monetary policy. Be sure to include the Federal Reserve, banks, and the impact of...
Illustrate expansionary monetary policy. Be sure to include the Federal Reserve, banks, and the impact of money and interest rates. Need assistance with graphing the expansionary monetary policy.
Explain why the expansionary monetary policy becomes ineffective during a liquidity trap? Suppose the government takes...
Explain why the expansionary monetary policy becomes ineffective during a liquidity trap? Suppose the government takes an expansionary fiscal policy by increasing its expenditure on military equipment. Here, would an expansionary fiscal policy be more effective than expansionary monetary policy to escape a liquidity trap?
the possible answers:
How will an expansionary fiscal policy affect exchange rates, via interest rates? Expansionary Fiscal Policy select answer select answer Competitiveness decreases Competitiveness increases The domestic currency depreciates The domestic currency appreciates Income decreases Income increases Interest rates decrease Interest rates increase Imports decrease Imports increase Price level decreases Price level increases Trade deficit decreases Trade deficit increases
Classify each statement as an example of expansionary fiscal policy, contractionary fiscal policy, or not an example of fiscal policy. Expansionary fiscal policy Contractionary fiscal policy Not an example of fiscal policy Answer Bank a decrease in government spending an increase in corporate bonds purchased a decrease in transfer payments a decrease in the money supply a decrease in taxes an increase in the money supply a decrease in the unemployment rate an increase in tax rates an increase in...
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