Which of the following actions DOES NOT belong to fiscal policy?
A) Lower interest rate
B) Increase government spending
C) Increase debt ceiling
D) Decrease tax rate
Which of the following actions DOES NOT belong to fiscal policy? A) Lower interest rate 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...
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 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....
1. When countries have severe debt problems: fiscal policy is an especially good idea. expansionary fiscal policy can reduce real growth. it makes no difference for fiscal policy. they can continue to borrow forever without any adverse consequences. 2. Increases in government spending financed through additional borrowing will typically: lead to higher taxes. lead to higher interest rates. stimulate both consumption and investment. provide more stimulus than when government spending is financed through higher taxes. 3. In a recession, automatic...
Which of the following represents the most expansionary fiscal policy? Multiple Choice a $10 billion tax cut a $10 billion increase in government spending a $10 billion tax increase a $10 billion decrease in government spending
1.) Which of the following is an example of a timing problem with enacting fiscal policy? Since most people increasing their savings when their income rises, the tax multiplier is likely to be smaller than originally thought. Once the government increases spending, it is difficult to decrease spending in the future Democrats want to pass a spending bill, but Republicans do not. They argue for months in the House of Representatives prior to a modified bill being passed. the Federal...
What fiscal policy action might increase investment and speed economic growth? Explain how the policy action would work. A fiscal policy action that might increase investment and speed economic growth is ______ , which works by ______ the real interest rate paid by borrowers and ______ the real interest rate earned by savers and suppliers of loanable funds. A. a decrease in the tax on interest income; lowering; raising B. government borrowing; raising; lowering C. a decrease in the tax...
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
Question 4 Which factor is an expansionary fiscal policy? A. an increase in taxes that reduces the budget deficit and decreases consumption B. a decrease in government spending C. an increase in unemployment benefits D. an increase in the money supply that decreases interest rates > Moving to another question will save this response.
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...