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 lowering interest rates
If the congress lowers government spending in order to balance the budget, what should be the response of the Fed?
a. The Fed should increase money supply and decrease the interest rate
b. The Fed should increase the interest rate and decrease money supply
c. The Fed should conduct open market sale
d. None of the above
Homework Answers
A.Expansionary fiscal policy is reduction in taxes and increase in government purchases.
Answer-C
B.Contractionary monetary policy is reduction in money supply by increasing bank rates, lending rates,open market sale of securities.
Answer-B
C.Lowering spending reduces GDP.To balance the economy the fed should increase money supply,so that AD does not fall in response to reduction in government spending.
Answer-A
Add Answer to:
Which of the following is an example of an expansionary fiscal policy? a. The US government increasing corporate taxes b...
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 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....
Question 4 Which factor is an expansionary fiscal policy? A. an increase in taxes that reduces...
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.
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to appreciate b)exports increase c)interest rates decrease d)demand for loanable funds decrease e)decreases merchandise trade deficit 2. When the Fed decreases money supply to combat inflation, it cuases: a)the price of the U.S. dollar to decrease b) capital to flow out of the US c)an increase in the merchandise trade deficit d)an increase in private spending e) a decrease in the interest rates 3. Which...
Expansionary fiscal policy ________________ to fight______________. increase the money supply and cut interest rates, recession. decrease...
Expansionary fiscal policy ________________ to fight______________. increase the money supply and cut interest rates, recession. decrease the money supply and raise interest rates, inflation. increase government spending and cut taxes, recession. decrease government spending and raise taxes, inflation.
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...
Suppose the Fed wanted to engage in an expansionary monetary policy. Which of the following should...
Suppose the Fed wanted to engage in an expansionary monetary policy. Which of the following should it do? a. Increase the reserve requirement ratio. b. Buy bonds on the open market. c. Sell bonds on the open market. d. Lower taxes. e. Increase the discount rate. The interest rate at which banks can borrow funds from the Fed is known as… a. the federal funds rate. b. the discount rate. c. the prime rate. d. the real interest rate. e....
all please Question 7 6 pts involves decreases in government spending and increases in taxes, while...
all
please
Question 7 6 pts involves decreases in government spending and increases in taxes, while government spending and decreases in taxes. involves increases in contractionary monetary policy; expansionary monetary policy contractionary fiscal policy, expansionary fiscal policy expansionary fiscal policy; contractionary fiscal policy expansionary monetary policy, contractionary monetary policy Question 9 6 pts Which of the following is an example of automatic, expansionary fiscal policy? O Legislation passed to extend unemployment benefits longer than 6 months O Higher personal income...
1. When countries have severe debt problems: fiscal policy is an especially good idea. expansionary fiscal...
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...
1. Which one of the following is not an example of expansionary fiscal policy? a. Increasing...
1. Which one of the following is not an example of expansionary fiscal policy? a. Increasing government spending on unemployment insurance b. Decreasing government spending on education c. Decreasing federal income tax rates d. Increasing government spending on the military e. Decreasing local property taxes 2. In recessions, tax revenues tend to decline and transfer payments like unemployment insurance and food stamps tend to increase, so these programs... a. increase unemployment. b. create budget surpluses during economic downturns. c. are...
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 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.
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...
all
please
Question 7 6 pts involves decreases in government spending and increases in taxes, while government spending and decreases in taxes. involves increases in contractionary monetary policy; expansionary monetary policy contractionary fiscal policy, expansionary fiscal policy expansionary fiscal policy; contractionary fiscal policy expansionary monetary policy, contractionary monetary policy Question 9 6 pts Which of the following is an example of automatic, expansionary fiscal policy? O Legislation passed to extend unemployment benefits longer than 6 months O Higher personal income...
Most questions answered within 3 hours.
-
For this problem, carry at least four digits after the decimal
in your calculations. Answers may...
asked 44 minutes ago -
Ask a user for three positive integer numbers. Use an input
validation loop to make sure...
asked 47 minutes ago -
The most primitive form of data from data analysis perspective
is a. nominal scale b. ordinal...
asked 49 minutes ago -
The number of vacancies in some hypothetical metal increases by
a factor of 5 when the...
asked 52 minutes ago -
The fiduciary duty that is predicated on the concept that a
board of directors and officers...
asked 54 minutes ago -
Sustainable Growth Rate Last year Umbrellas Unlimited
Corporation had an ROE of 17.3% and a dividend...
asked 1 hour ago -
Write a MATLAB program to do the following:
Receive 5 input values and store them into...
asked 1 hour ago -
Which one of the following aqueous solutions would you expect to
have the largest conductance: (a)...
asked 1 hour ago -
(Intermediate Macroeconomics)
2.The aggregate supply function be ys=2000+P, and the aggregate
demand function be yD=2400-P。Find the...
asked 1 hour ago -
I am having a really difficult time developing a strong thesis
for this question....... To what...
asked 1 hour ago -
There are n street lights in a line. In order to conserve
energy, the city decides...
asked 1 hour ago -
Cellular growth and repair require a cell to go through the cell
cycle. Like all biological...
asked 1 hour ago