11) If the investment demand curve is almost horizontal, A) both monetary and fiscal policy are ineffective. B) both monetary and fiscal policy are very effective. C) monetary policy is ineffective, but fiscal policy can be effective. D) monetary policy is effective.
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A: Recession: The term recession refers to the period in which economic activities slow down and…
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A: Execution tag- The period between the conclusion of one task and the beginning of a different…
Q: Compare and contrast both fiscal policy and monetary Policy
A: Answer: Comparison: Fiscal policy Monetary policy Fiscal policy is undertaken by the government…
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A: Recession is a period of time in an economy when there is low or slow growth in economy wherein the…
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A: Fixed policy rule refers to the situation when government officials beleives in some special set of…
Q: Differentiate between monetary and fiscal policy.
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Q: Define the following concepts: Sticky Prices Expansion and contraction Inflation, Deflation and…
A: Sticky prices: it implies that the price remains constant despite the changes in the economy or that…
Q: a) Discuss monetary policy and fiscal policy by comparing and contrasting their effects in the short…
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A: AT some extent this statement is true because economy is big where larger numbers of buyers and…
Q: a. Which of the following are considered limitations of fiscal policy? Instructions: In order to…
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Q: ich of the following statements are FALSE? (a) When the government prints money to buy…
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Q: Which of the following statements about Fiscal Policy is INCORRECT? (a) In order to combat…
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Q: Which of the following accurately compares discretionary fiscal policy and monetary policy? a) They…
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A: Answer 8. The way the central government generates money through taxation and spends it is…
Q: What is the best combination of fiscal policies and monetary policies for a country like Japan whose…
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Q: According to Classical economists, which type of fiscal policy financing produces "crowding out? a.…
A: Crowding out refers to the procedure where increases in government spending decreases other…
Q: Which answer choice represents a fiscal policy rather than a monetary policy? A lowering the money…
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Q: Nobel prize-winning economist Milton Friedman once had the following statement: "In- flation is…
A: Inflation refers to the persistent rise in the general price level. Inflation is worrisome for the…
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Q: Define the following: -Inside lag -Outside lag Which has the longer lag-monetary or fiscal…
A: The policy that depicts the control of the money quantity being available in an economy and the…
Q: )Which of the following statements is most accurate regarding fiscal policy and monetary policy?…
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Q: The rational expectations theory suggests that as the public learns more about the effects of fiscal…
A: Rational expectation theory suggests the economic agents have full information about the economy,…
Q: Determine whether the following items are examples of expansionary fiscal policy, contractionary…
A: Fiscal policy can be defined as the use of government expenditure and taxation to influence the…
Q: 12. Of the following reasons why fine-tuning the economy is not likely to be successful, which one…
A: The difficulty of crafting and assembling a political consensus around a set of measures to…
Q: The 'automatic mechanism' can best be described as using fiscal or monetary policies to stabilize…
A: Automatic Mechanism is also known as self correction.
Q: Macropoland is currently experiencing a recession--consumption and investment are very sluggish, and…
A: Fiscal policy deals with altering the tax rate or/and government spending to make adjustment in the…
Q: y describe
A: Given : Y=C+I+G C=100+.75(Y−T) I=500−50r G=125 T=100
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- a) Discuss monetary policy and fiscal policy by comparing and contrasting their effects in the short run and in the long run. b) Why do we say that monetary policy is neutral in the long run? If so, why is it being used and considered as useful? c) Can we say that fiscal policy is neutral as well?Which of the following accurately compares discretionary fiscal polícy and monetary policy? a) They both directly impact the aggregate demand, while only monetary policy can ever affect the aggregate supply in the economy. b) They both suffer from a lag between the problem, its recognition, and the impact of a policy remedy. c) Monetary policy can be very controversial, while discretionary fiscal policy is generally not subject to politics. d) Fiscal policy deals with the amount of currency available, while monetary policy is made up of government spending and taxing. e) Fiscal policy deals with aggregate supply, and monetary policy addresses aggregate demand.Fiscal and Monetary Policy Assignment When the economy gets into serious problems, the government has two policies that offer the potential to get us back to equilibrium. Fiscal Policy works through government spending and taxes, while Monetary Policy works through the money supply. Read each scenario below and decide what the correct fiscal and monetary policy would be to correct the issue. 1. You read the following information on the economy. The economy has fallen into a recession. Use this information to do three things below: A. Draw an AS & AD graph that fits the details above. B. What is the corrective fiscal policy in this case?
- Which of the following is true according to mainstream economics? If a balanced budget amendment to the Constitution were ratified, we should expect the Federal Reserve and Monetary Policy to be less important If a balanced budget amendment to the Constitution were ratified, we should expect Fiscal Policy to become more effective three of the answers listed are correct If a balanced budget amendment to the Constitution were ratified, we should expect worse recessions If a balanced budget amendment to the Constitution were ratified, we should expect milder recessions O O OIf Investment = f(r*) a. Explain with pictures how it affects the balance of Supply/Saving and Investment Demand in the event of Fiscal policy, namely by decreasing state spending and increasing taxes. b. Explain with pictures how it affects the balance of Supply/Saving and Investment Demand in the event of Fiscal policy, namely by decreasing state spending and increasing taxes if it happens overseasThis course is designed to provide an understanding of market economies and the fluctuations they are subject to. With this in mind, please answer the questions that follow. a) Assume the economy is in a recession. Discuss how the government could implement fiscal policy to deal with the recession and the steps by which fiscal policy moves the economy out of the recession (Explain fully). b) Explain how expansionary fiscal policy in the U.S. would affect the economies of other countries.
- a. What are the fiscal policy tools the government can use to expand an economy that is in a recession? Explain the interaction between monetary and fiscal policy?b. Explain how monetary policy is expected to affect investment and aggregate expenditure and discuss its connection with interest rates and output?The economy is experiencing rapid inflation, pushing above 9%. Which fiscal policy action should the government implement in an attempt to fix this problem? A.) decrease interest rates B.) raise taxes C.) increase spending D.) increase reserve requirementsAddressing recession using Fiscal and Monetary Policy tools. Scenario - The US economy is currently experiencing recession. You have Fiscal and Monetary policy tools available to address this problem: A) To attack the problem of recession, you must select at least one Monetary Policy tool and one Fiscal Policy tool. Write down the name of your Fiscal Policy tool and your Monetary Policy tool. Think the options through and write down your choices. B) Please explain why you selected the tools that you selected and why you did not select the other choices? Do this for both monetary and fiscal policy tools! Specifically, explain what is so good about the tool you selected and what is not so good about the tools you did not select? Do this for both the Monetary Policy tool and the Fiscal Policy tool. The key here is to use some decision criteria in making your choice. C) Thoroughly and completely explain how your solution (both monetary and fiscal policy tools) would work to…
- This course is designed to provide an understanding of market economies and the fluctuations they are subject to. With this in mind, please answer the questions that follow. a) Assume the economy is in a recession. Discuss how the government could implement fiscal policy to deal with the recession and the steps by which fiscal policy moves the economy out of the recession b) Why is the shape of the aggregate supply curve important in understanding the impact of monetary and fiscal policy?Which of the following would not be classified as Expenditure Reducing Policies? Select one: a. None of the answers is correct b. All the answers are correct c. Using Fiscal and monetary policies d. Policies to improve competitiveness e. Devaluing the exchange rateHow does the government budget process impact fiscal policy decisions, and what are the potential consequences of budget deficits and surpluses? A) The government budget process has no bearing on fiscal policy decisions. B) The government budget process involves decisions about government spending and taxation; budget deficits occur when spending exceeds revenue, while surpluses occur when revenue exceeds spending. Deficits may lead to increased borrowing and interest payments, while surpluses can reduce government debt. C) The government budget process exclusively focuses on taxation and has no relation to spending. D) Budget deficits always lead to economic stability.