Homework Answers
Ans) the correct option is b) fed lowers the interest rate by increasing the money supply.
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QUESTION 5 All of the following are examples of fiscal policy, EXCEPT when the A. government...
Examples of fiscal policy do not include: A.reducing the interest rate by increasing the money supply....
Examples of fiscal policy do not include: A.reducing the interest rate by increasing the money supply. B. Government spending on infrastructure to stimulate aggregate demand. C. A $1,500 per family tax rebate D. An economic stimulus package
Which of the following is an example of an expansionary fiscal policy? a. The US government increasing corporate taxes b...
Which of the following is an example of an expansionary fiscal policy? a. The US government increasing corporate taxes b. The US government lowering spending in order to balance the budget c. The US government lowering corporate and individual taxes d. The Fed lowering interest rates Which of the following is an example of contractionary monetary policy? a. The Fed conducting open market purchase b. The Fed conducting open market sale c. The US government increases taxes d. The Fed...
14. What kind of fiscal policy the following examples will mean? a. When government increase taxes....
14. What kind of fiscal policy the following examples will mean? a. When government increase taxes. b. To combat the great recession of 2007-2008, U.S. government increased government spending. C. When the overall effect of decisions about taxation and spending is to reduce aggregate demand
1. All of the following are examples of government purchases of goods & services EXCEPT The...
1. All of the following are examples of government purchases of goods & services EXCEPT The government makes social security payment to your grandmother The government pays the salaries of military servicemen and servicewomen The government pays the salaries of members of Congress The government purchases 500 new helicopters for the army 2. All of the following are examples of investment spending EXCEPT A household purchases a newly constructed house A business purchases new robotic manufacturing equipment A business purchases...
Among the most important problems of implementing fiscal policy include all except which of the following?...
Among the most important problems of implementing fiscal policy include all except which of the following? Correctly timing the desired fiscal stimulus, given the inevitable lags and forecasting errors Determining how large a stimulus to apply Assessing when policy actions should be reversed Determining how long a time lag to apply If the central bank does not use accommodating monetary policy, a fiscal stimulus is likely to increase interest rates, which in turn, will cause planned investment to decrease. What...
D Question 5 1 pts A major concern of fiscal policy is how federal government taxing...
D Question 5 1 pts A major concern of fiscal policy is how federal government taxing and spending affects aggregate demand. how changes to the budget affect the money supply. how changes to the money supply affect aggregate demand. - Previous Next Question 9 1 pts of the following examples, which is an example of an automatic fiscal policy stabilizer? Congress increases individual income tax rates. Congress decides to cut spending on national parks. Tax revenues increase as real GDP...
QUESTION 1 Which of the following is an example of an automatic fiscal policy stabilizer? a....
QUESTION 1 Which of the following is an example of an automatic fiscal policy stabilizer? a. Tax revenues fall as real GDP decreases. b. Congress decides to cut spending on national defense. c. Congress cuts individual income tax rates. d. Tax revenues rise after Congress raises corporate tax rates. QUESTION 7 When a country's economy is producing at a level that is less than its potential GDP, the standardized employment deficit will show a ________ than the actual deficit. a....
FISCAL POLICY IN THEORY: March, 2020: we are on the verge of Congress and the President...
FISCAL POLICY IN THEORY: March, 2020: we are on the verge of Congress and the President passing legislation that will empower the federal government to spend an unprecedented amount of EXTRA money not seen since World War 2 ---- in order to address the pandemic but also to help cushion the blow financially of perhaps ten or twenty million Americans --- or more --- losing their jobs, and thus suffering a drop in income. The scale of the 2020 recession...
2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely...
2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely to save, that is, sell a financial asset. B. more likely to save, that is, sell a financial asset. C. less likely to save, that is, purchase a financial asset. D. more likely to save, that is, purchase a financial asset. I. In 2. If commercial banks hold all their assets in the form of required reserves: A. only they will be able to...
QUESTION 10 Consider the monthly data, including the estimates for March 2020, and the information in...
QUESTION 10
Consider the monthly data, including the estimates for March
2020, and the information in the articles. Which of the following
is the best analysis of and prediction for the money market in the
U.S. economy for the next few months?
a.
Shortages are causing panic buying by households, which has
increased money demand. Lenders are increasing their lending to
keep up with the needs of households and businesses. Money demand
is increasing more than money supply.
b.
Shortages...
14. What kind of fiscal policy the following examples will mean? a. When government increase taxes. b. To combat the great recession of 2007-2008, U.S. government increased government spending. C. When the overall effect of decisions about taxation and spending is to reduce aggregate demand
D Question 5 1 pts A major concern of fiscal policy is how federal government taxing and spending affects aggregate demand. how changes to the budget affect the money supply. how changes to the money supply affect aggregate demand. - Previous Next Question 9 1 pts of the following examples, which is an example of an automatic fiscal policy stabilizer? Congress increases individual income tax rates. Congress decides to cut spending on national parks. Tax revenues increase as real GDP...
2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely to save, that is, sell a financial asset. B. more likely to save, that is, sell a financial asset. C. less likely to save, that is, purchase a financial asset. D. more likely to save, that is, purchase a financial asset. I. In 2. If commercial banks hold all their assets in the form of required reserves: A. only they will be able to...
QUESTION 10
Consider the monthly data, including the estimates for March
2020, and the information in the articles. Which of the following
is the best analysis of and prediction for the money market in the
U.S. economy for the next few months?
a.
Shortages are causing panic buying by households, which has
increased money demand. Lenders are increasing their lending to
keep up with the needs of households and businesses. Money demand
is increasing more than money supply.
b.
Shortages...
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