Homework Answers
Monetary policy is controlled by the Central Bank of the nation instead of the Federal Government. Federal government controls Fiscal Policy which include government spending and Taxation whereas Monetaryy policy works through controlling money supply through Interest rates,reserve requirements etc. Hence, First statement is correct
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Monetary policy refers to the Multiple Choice altering of the interest rate to change aggregate demand....
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...
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...
because it Monetary policy that decreases the interest rate is called A. contractionary monetary policy, reduces...
because it Monetary policy that decreases the interest rate is called A. contractionary monetary policy, reduces AD. B. contractionary monetary policy; reduces SRAS. C. expansionary monetary policy; increases AD. D. expansionary monetary policy; increases SRAS. QUESTION 11 Other things the same, a fall in an economy's overall level of prices tends to A. raise both the quantity demanded and supplied of goods and services. B. raise the quantity demanded of goods and services, but lower the quantity supplied. C. lower...
36. True or False: In order to accomplish the same change in aggregate demand, the government...
36. True or False: In order to accomplish the same change in aggregate demand, the government will always need to increase spending more than a change a tax. a. True b. False 37. When the government increases taxes and government spending by the same amount a. The Ricardo-Barro effect predicts less savings and the government is still b. The government must increase the deficit to finance the spending and the c. There is no change in the government budget deficit...
36 37 Fiscal policy refers to changes in A) state and local taxes and purchases that...
36 37 Fiscal policy refers to changes in A) state and local taxes and purchases that are intended to achieve macroeconomic policy objectives. B) federal taxes and purchases that are intended to achieve macroeconomic policy objectives. C) federal taxes and purchases that are intended to fund the war on terrorism. D) the money supply and interest rates that are intended to achieve macroeconomic policy objectives. 3957 Which of the following is an objective of fiscal policy? A) energy independence from...
8. Using policy to stabilize the economy 8. Using policy to stabilize the economy The government...
8. Using policy to stabilize the economy
8. Using policy to stabilize the economy The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply. Shifts in aggregate demand are often the result of waves of pessimism...
Check my answers please ?? MULTIPLE CHOICE. Choose the one alternative that best completes the statement...
Check my answers please ??
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) 1) The use of government taxes and spending to alter economic outcomes is known as A) Incomes policy Q) Monetary policy B) Foreign trade policy. D) Fiscal policy A- 2) 2) If full-employment output exceeds equilibrium output, greater deficit spending will result A) Smaller recessionary gap C) Smaller inflationary gap. B) Larger recessionary gap. D) None of the choices...
Explain how fiscal policy (government spending and taxes) and monetary policy (determining interest rates) affect the...
Explain how fiscal policy (government spending and taxes) and monetary policy (determining interest rates) affect the level of output and employment in the economy according to Keynesian theory. What fiscal and monetary policies should the government follow to pull the economy out of a recession?
Determine how each of the following monetary or fiscal policy would shift the aggregate demand curve. Illustrate and explain the following effect. a. As the economy is in the state of recession, the government decided to increase government spen
1. Determine how each of the following monetary or fiscal policy would shift the aggregate demand curve. Illustrate and explain the following effect. a. As the economy is in the state of recession, the government decided to increase government spending. b. Central bank decided to fight an inflationary economy by reducing money supply. c. Under full employment economy, the government has decided to increase taxes on income earned by people.
Macroeconomic Multiple Choice Questions Answer All 10 Questions* 1) If the Central Bank of Kuwait puts...
Macroeconomic Multiple Choice Questions
Answer All 10 Questions*
1) If the Central Bank of Kuwait puts in place an expansionary monetary policy, its decision is based on A) the fact that the economy is at full employment B) Expectation of excessive inflation in the future C) the fact that the economy is in an expansion D) Unemployment level is high 2) When the interest rate is set at a very low rate A) the opportunity cost of holding money is...
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...
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...
because it Monetary policy that decreases the interest rate is called A. contractionary monetary policy, reduces AD. B. contractionary monetary policy; reduces SRAS. C. expansionary monetary policy; increases AD. D. expansionary monetary policy; increases SRAS. QUESTION 11 Other things the same, a fall in an economy's overall level of prices tends to A. raise both the quantity demanded and supplied of goods and services. B. raise the quantity demanded of goods and services, but lower the quantity supplied. C. lower...
36. True or False: In order to accomplish the same change in aggregate demand, the government will always need to increase spending more than a change a tax. a. True b. False 37. When the government increases taxes and government spending by the same amount a. The Ricardo-Barro effect predicts less savings and the government is still b. The government must increase the deficit to finance the spending and the c. There is no change in the government budget deficit...
36 37 Fiscal policy refers to changes in A) state and local taxes and purchases that are intended to achieve macroeconomic policy objectives. B) federal taxes and purchases that are intended to achieve macroeconomic policy objectives. C) federal taxes and purchases that are intended to fund the war on terrorism. D) the money supply and interest rates that are intended to achieve macroeconomic policy objectives. 3957 Which of the following is an objective of fiscal policy? A) energy independence from...
8. Using policy to stabilize the economy
8. Using policy to stabilize the economy The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply. Shifts in aggregate demand are often the result of waves of pessimism...
Check my answers please ??
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) 1) The use of government taxes and spending to alter economic outcomes is known as A) Incomes policy Q) Monetary policy B) Foreign trade policy. D) Fiscal policy A- 2) 2) If full-employment output exceeds equilibrium output, greater deficit spending will result A) Smaller recessionary gap C) Smaller inflationary gap. B) Larger recessionary gap. D) None of the choices...
Macroeconomic Multiple Choice Questions
Answer All 10 Questions*
1) If the Central Bank of Kuwait puts in place an expansionary monetary policy, its decision is based on A) the fact that the economy is at full employment B) Expectation of excessive inflation in the future C) the fact that the economy is in an expansion D) Unemployment level is high 2) When the interest rate is set at a very low rate A) the opportunity cost of holding money is...
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