Expansionary fiscal policy ________________ to fight______________. increase the money supply and cut interest rates, recession. decrease...
Expansionary fiscal policy ________________ to fight______________.
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increase the money supply and cut interest rates, recession. |
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decrease the money supply and raise interest rates, inflation. |
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increase government spending and cut taxes, recession. |
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decrease government spending and raise taxes, inflation. |
Homework Answers
expansionary fiscal policy means that the government works to increase output wityhin the economy, the examples of expansionary fiscal policy are increase in government spendings and decrease in taxes
so basically it is used to fight recession
so answer is C
Add Answer to:
Expansionary fiscal policy ________________ to
fight______________.
increase the money supply and cut interest rates, recession.
decrease...
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...
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...
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.
The crowding-out from expansionary fiscal policy causes real interest rates to (increase/decrease) investment to (decrease/increase) , and...
The crowding-out from expansionary fiscal policy causes real interest rates to (increase/decrease) investment to (decrease/increase) , and aggregate demand to shift (left/right),(decreasing/increasing) the overall impact of expansionary economic policy.
During a recession, if a government uses an expansionary fiscal policy to increase GDP, the: Question...
During a recession, if a government uses an expansionary fiscal policy to increase GDP, the: Question 21 options: a) aggregate supply curve will shift to the right. b) aggregate supply curve will shift to the left. c) aggregate demand curve will shift to the left. d) aggregate demand curve will shift to the right. Suppose the government passes a new law that decreases tax rates. This policy is… Question 22 options: a) automatic and expansionary b) automatic and contractionary c)...
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...
30-33 30) An appropriate fiscal policy for a severe recession is B) a decrease in tax...
30-33
30) An appropriate fiscal policy for a severe recession is B) a decrease in tax rates. D) a decrease in government spending. A) appreciation of the dollar. C) an increase in interest rates. 31) A contractionary fiscal policy is shown as a A) rightward shift in the economy's aggregate demand curve. B) rightward shift in the economy's aggregate supply curve C) leftward shift in the economy's aggregate demand curve. D) movement along an existing aggregate demand curve. 32) A...
the possible answers: How will an expansionary fiscal policy affect exchange rates, via interest rates? Expansionary...
the possible answers:
How will an expansionary fiscal policy affect exchange rates, via interest rates? Expansionary Fiscal Policy select answer select answer Competitiveness decreases Competitiveness increases The domestic currency depreciates The domestic currency appreciates Income decreases Income increases Interest rates decrease Interest rates increase Imports decrease Imports increase Price level decreases Price level increases Trade deficit decreases Trade deficit increases
2) During a Recession, the MPC tends to a) Increase, increases b) Decrease, decreases c) Decrease,...
2) During a Recession, the MPC tends to a) Increase, increases b) Decrease, decreases c) Decrease, increases d Increase, decreases which the recessionary gap 3) Suppose that the MPC is .75 and the U.S Federal Government reduces taxes by 10 million dollars. After 3 rounds of the multiplier process RGDP will change by a) 4.23 million b) 17.34 million c) 23.13 million dollars. d) 30 million 4) "George W. Bush's $152 billion tax rebate plan of 2008 was designed to...
Which of the following statements is true? expansionary fiscal policy is appropriate to combat economic downturn...
Which of the following statements is true? expansionary fiscal policy is appropriate to combat economic downturn The Fed should reduce the discount rate to combat economic downturn an increase in inflation rate tends to bring down real interest rates, holding everything else constant A $1 increase in government spending tends to raise GDP by more than $1 any one of the answers is correct.
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.
30-33
30) An appropriate fiscal policy for a severe recession is B) a decrease in tax rates. D) a decrease in government spending. A) appreciation of the dollar. C) an increase in interest rates. 31) A contractionary fiscal policy is shown as a A) rightward shift in the economy's aggregate demand curve. B) rightward shift in the economy's aggregate supply curve C) leftward shift in the economy's aggregate demand curve. D) movement along an existing aggregate demand curve. 32) A...
the possible answers:
How will an expansionary fiscal policy affect exchange rates, via interest rates? Expansionary Fiscal Policy select answer select answer Competitiveness decreases Competitiveness increases The domestic currency depreciates The domestic currency appreciates Income decreases Income increases Interest rates decrease Interest rates increase Imports decrease Imports increase Price level decreases Price level increases Trade deficit decreases Trade deficit increases
2) During a Recession, the MPC tends to a) Increase, increases b) Decrease, decreases c) Decrease, increases d Increase, decreases which the recessionary gap 3) Suppose that the MPC is .75 and the U.S Federal Government reduces taxes by 10 million dollars. After 3 rounds of the multiplier process RGDP will change by a) 4.23 million b) 17.34 million c) 23.13 million dollars. d) 30 million 4) "George W. Bush's $152 billion tax rebate plan of 2008 was designed to...
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