Homework Answers
Answer is D. Expansionary monetary policy.
Fiscal policies results in long run, so monetary policy will work in short run. Monetary policy can be effectively implimented in short run.
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With a fixed exchange rate, what would increase output in the short run? Contractionary fiscal policy...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate With a fixed...
15,16 Question Completion Status: QUESTION 15 With a fixed exchange rate, what would be effective stabilization...
15,16
Question Completion Status: QUESTION 15 With a fixed exchange rate, what would be effective stabilization policy during a recession? O Expansionary fiscal policy O Expansionary monetary policy O Contractionary fiscal policy O Contractionary monetary policy QUESTION 16 because it affects a component of aggregate demand. On the DD curve, exchange rate depreciation causes output to A. fall; investment B. fall; the current account o rise; consumption OD. rise; the current account QUESTION 17 shte in tame Inflation. The country's
21. (2pt) Analyze, graphically, the changes in equilibrium output, interest rate, and the nominal exchange rate...
21. (2pt) Analyze, graphically, the changes in equilibrium output, interest rate, and the nominal exchange rate when there is a contractionary monetary policy under a flexible exchange rate regime 2g. (pt) Analyze, graphically, the changes in equilibrium output, interest rate, and the nominal exchange rate when there is an expansionary fiscal policy under a flexible exchange rate regime. 2h. (3pt) Analyze, graphically, the changes in equilibrium output, interest rate, and the nominal exchange rate when there is a contractionary monetary...
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...
Question 72 1 pts Suppose there is a policy mix of contractionary monetary policy and expansionary...
Question 72 1 pts Suppose there is a policy mix of contractionary monetary policy and expansionary fiscal policy. This combination of policies must cause: a reduction in i. an increase in output (Y). a reduction in Y. an increase in the interest rate (i). an increase in consumption.
f contractionary monetary policy is used, then which of the following would be most likely to...
f contractionary monetary policy is used, then which of the following would be most likely to enhance the effect of the contractionary policy on aggregate demand? Interest rates would increase, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate depreciation and a rise in net exports. Interest rates would increase, leading to...
V) How would the contractionary monetary policy affect the domestic economy’s trade balance compa...
v) How would the contractionary monetary policy affect the domestic economy’s trade balance compared to trade deficits (Expansionary Fiscal Policy) 2) Consider the following representation of a model economy, C = 4 + 0.7Y P = 5W I = 1 − 2i W/Pe = 0.02Y Q = 0 Ms = 600 X = 0 L(i, Y ) = P(5Y − 2i) i) Find the Aggregate Supply equation for this economy. ii) What is “medium run” full employment output in this...
Identify each government policy as an example of Expansionary Fiscal Policy or Contractionary Fiscal Policy, [Choose]...
Identify each government policy as an example of Expansionary Fiscal Policy or Contractionary Fiscal Policy, [Choose] The Coronavirus Aid, Relief, and Economic Security (CARES) Act, 2020 < American Recovery and Reinvestment Act, 2009 [Choose] < [Choose] Elimination of the State and Local Tax (SALT) deduction from annual income taxes $100 increase in vehicle registration fees [Choose ] Troubled Asset Relief Program (TARP), 2008 [Choose] Identify whether each scenario is an example of Expansionary Monetary Policy or Restrictive Monetary Policy. The...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals
What is a contractionary fiscal policy? When would an economy ever pursue a contractionary fiscal policy?...
What is a contractionary fiscal policy? When would an economy ever pursue a contractionary fiscal policy? When was the last time the US government pursued a contractionary fiscal policy? What did it do? What was the result.
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate With a fixed...
15,16
Question Completion Status: QUESTION 15 With a fixed exchange rate, what would be effective stabilization policy during a recession? O Expansionary fiscal policy O Expansionary monetary policy O Contractionary fiscal policy O Contractionary monetary policy QUESTION 16 because it affects a component of aggregate demand. On the DD curve, exchange rate depreciation causes output to A. fall; investment B. fall; the current account o rise; consumption OD. rise; the current account QUESTION 17 shte in tame Inflation. The country's
21. (2pt) Analyze, graphically, the changes in equilibrium output, interest rate, and the nominal exchange rate when there is a contractionary monetary policy under a flexible exchange rate regime 2g. (pt) Analyze, graphically, the changes in equilibrium output, interest rate, and the nominal exchange rate when there is an expansionary fiscal policy under a flexible exchange rate regime. 2h. (3pt) Analyze, graphically, the changes in equilibrium output, interest rate, and the nominal exchange rate when there is a contractionary monetary...
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...
Question 72 1 pts Suppose there is a policy mix of contractionary monetary policy and expansionary fiscal policy. This combination of policies must cause: a reduction in i. an increase in output (Y). a reduction in Y. an increase in the interest rate (i). an increase in consumption.
f contractionary monetary policy is used, then which of the following would be most likely to enhance the effect of the contractionary policy on aggregate demand? Interest rates would increase, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate depreciation and a rise in net exports. Interest rates would increase, leading to...
Identify each government policy as an example of Expansionary Fiscal Policy or Contractionary Fiscal Policy, [Choose] The Coronavirus Aid, Relief, and Economic Security (CARES) Act, 2020 < American Recovery and Reinvestment Act, 2009 [Choose] < [Choose] Elimination of the State and Local Tax (SALT) deduction from annual income taxes $100 increase in vehicle registration fees [Choose ] Troubled Asset Relief Program (TARP), 2008 [Choose] Identify whether each scenario is an example of Expansionary Monetary Policy or Restrictive Monetary Policy. The...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals
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