In the Keynesian model, the difference between using monetary and fiscal policy to eliminate a recession...

Question

Question

In the Keynesian model, the difference between using monetary and fiscal policy to eliminate a recession...

In the Keynesian model, the difference between using monetary and fiscal policy to eliminate a recession is that________.

an expansionary fiscal policy will leave the economy with a lower real interest rate than an expansionary monetary policy.

fiscal policy will eliminate a recession quicker than monetary policy will.

monetary policy will eliminate a recession quicker than fiscal policy will.

an expansionary monetary policy will leave the economy with a lower real interest rate than an expansionary fiscal policy.

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Ans) the correct option is d) an expansionary monetary policy will leave the economy with a lower real interest rate than an expansionary fiscal policy.

Add a comment

Answer 2

Similar Homework Help Questions

Using the New Keynesian model framework, try to use the model to explain the Great Recession,...

Using the New Keynesian model framework, try to use the model to explain the Great Recession, also include in the model the affects of the Monetary and Fiscal Policy pursued by the Federal Reserve and Federal Government, respectively. How would does your explanation change when using the Real Business Cycle model?
During a recession, economists traditionally focus on monetary and fiscal policies to bolster the economy. a. Use t...

During a recession, economists traditionally focus on monetary and fiscal policies to bolster the economy. a. Use the aggregate demand - aggregate supply (AD-AS) model in Panel A to show the effect of a tax cut, in the form of a tax rebate, given to each taxpayer. If inflation is high during a recession, some economists advocate cuts on marginal tax rates, to help avoid additional inflation. b. Use the AD-AS model in Panel B to show the effect of...
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?

The difference between fiscal policy and monetary policy.

The difference between fiscal policy and monetary policy.
Monetary Policy: Keynesian model a. Draw graphs for the IS-LM-FE model, the AD-AS model, and labor...

Monetary Policy: Keynesian model a. Draw graphs for the IS-LM-FE model, the AD-AS model, and labor market equilibrium for the Keynesian model with efficiency wages for an economy in a long-run equilibrium. Label equilibrium points.
Differentiate between expansionary and contractionary fiscal policy -Use a keynesian Analysis..

Differentiate between expansionary and contractionary fiscal policy -Use a keynesian Analysis..

What the difference between Keynes and Hayek views on how fiscal and monetary policy affect the...

What the difference between Keynes and Hayek views on how fiscal and monetary policy affect the economy? Thanks
WEEK 6: MONETARY POLICY AND FISCAL POLICY A healthy economy typically has low rates of unemployment...

WEEK 6: MONETARY POLICY AND FISCAL POLICY A healthy economy typically has low rates of unemployment and steady prices. Low rates of unemployment means that the economy is operating at its full potential. To ensure the economy continues to operate at potential GDP (full capacity where all savings are invested in production functions, and where all those who wish to work can find a job, and all other factors of production are fully utilized in the production function), governments use...
Explain the difference between Fiscal Policy and Monetary Policy. What are some of the “tools” used...

Explain the difference between Fiscal Policy and Monetary Policy. What are some of the “tools” used to implement fiscal policy? Cite at least two specific examples of action taken to implement fiscal policy (or at least attempted) in the past year. Who did what, how, and why?

briefly describe the difference between Fiscal & Monetary policies. Next identify at least one fiscal and...

briefly describe the difference between Fiscal & Monetary policies. Next identify at least one fiscal and one monetary policy that was instituted in March 2020 in response to the COVID-19 crisis to help with economic recovery. Using the AD-AS model, explain how these policies were expected to work.

In the Keynesian model, the difference between using monetary and fiscal policy to eliminate a recession...

Homework Answers

Add Answer to:
In the Keynesian model, the difference between using monetary and fiscal policy to eliminate a recession...

Post as a guest

Earn Coins

Using the New Keynesian model framework, try to use the model to explain the Great Recession,...

During a recession, economists traditionally focus on monetary and fiscal policies to bolster the economy. a. Use t...

Explain how fiscal policy (government spending and taxes) and monetary policy (determining interest rates) affect the...

The difference between fiscal policy and monetary policy.

Monetary Policy: Keynesian model a. Draw graphs for the IS-LM-FE model, the AD-AS model, and labor...

Differentiate between expansionary and contractionary fiscal policy -Use a keynesian Analysis..

What the difference between Keynes and Hayek views on how fiscal and monetary policy affect the...

WEEK 6: MONETARY POLICY AND FISCAL POLICY A healthy economy typically has low rates of unemployment...

Explain the difference between Fiscal Policy and Monetary Policy. What are some of the “tools” used...

briefly describe the difference between Fiscal & Monetary policies. Next identify at least one fiscal and...

In the Keynesian model, the difference between using monetary and fiscal policy to eliminate a recession...

Homework Answers

Add Answer to: In the Keynesian model, the difference between using monetary and fiscal policy to eliminate a recession...

Post as a guest

Earn Coins

Add Answer to:
In the Keynesian model, the difference between using monetary and fiscal policy to eliminate a recession...