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: 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
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Q: Differentiate between monetary and fiscal policy.
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A: AT some extent this statement is true because economy is big where larger numbers of buyers and…
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Q: Define the following: -Inside lag -Outside lag Which has the longer lag-monetary or fiscal…
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A: Rational expectation theory suggests the economic agents have full information about the economy,…
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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…
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A: Automatic Mechanism is also known as self correction.
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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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- Long run monetary neutrality implies that fiscal policy can only change output, not prices, in the long run monetary policy can change only nominal, not real, variables in the long run monetary policy can only change output, not prices, in the long run fiscal policy can change only real, not nominal, variables in the long runWhich of the following statements is false? It might sometimes make sense for a government to combine an expansionary monetary policy with an expansionary fiscal policy. If spending is very responsive to changes in interest rates, and the demand for money is interest inelastic, then monetary policy tends to be more powerful than fiscal policy. It would never make sense for a government to combine an expansionary monetary policy with a contractionary fiscal policy. If spending is not very responsive to changes in interest rates, and the demand for money is interest elastic, then fiscal policy tends to be more powerful than monetary policyWhat is the difference between monetary policy and fiscal policy? Provide at least three examples of monetary policy? Provide at least three examples of fiscal policy? Give an example of monetary and fiscal policy from the past year in response to Covid?
- Which of the following can be categorized under fiscal policy? a. Decrease in money supply b. Increase in federal funds rate c. Increase in taxes d. Increase in money supply e. Decrease in reserve requirementDetermine whether the following items are examples of expansionary fiscal policy, contractionary fiscal policy, expansionary monetary policy or contractionary monetary policy as they affect the aggregate demand of an economy. 1. A Significant treasury bond buyback *a. Expansionary fiscal policyb. Contractionary fiscal policyc. Expansionary monetary policyd. Contractionary monetary policy 2. Issuance of new treasury bonds at a higher interest rate *a. Expansionary fiscal policyb. Contractionary fiscal policyc. Expansionary monetary policyd. Contractionary monetary policyThe rational expectations theory suggests that as the public learns more about the effects of fiscal and monetary policy, in the pursuit of their own self interest they take actions that make Group of answer choices monetary policy more powerful than fiscal policy. fiscal policy more powerful than monetary policy. fiscal and monetary policy ineffective in achieving their stated aims. fiscal and monetary policy effective in achieving their stated aims.
- The Australian Government announced a wage subsidy called the JobKeeper payment for businesses that have been significantly affected by the economic impacts of the Coronavirus. This action is an example of... Select one: a. Discretionary fiscal expansion b. Discretionary fiscal contraction c. An automatic stabiliser d. Expansionary monetary policyWhen there is a problem of a delay in terms of implementation of the fiscal policy, that would be categorized as _____. execution lag information lag decision lag Fiscal policy nowadays are focused on eliminating GDP gap True False When the Central Bank controls the money supply by controlling the amount of high-powered money in the economy, that is called _____. interest rate fixation selective credit control open market operations required reserves ratio policy The focus of monetary policy nowadays is by using interest rate as an indicator. True FalseWhich of the following statements are FALSE? (a) When the government prints money to buy goods and services the resulting inflation is a form of tax, since people will not have to pay more for their goods and services than before. (b) An effective fiscal policy macroeconomic stimulus should aim to replace private spending with public (government) spending. (c) To be effective a fiscal policy macroeconomic stimulus should have temporary increases in spending and permanent tax cuts. (d) The paradox of thrift is that the increase in saving during a recession because people postpone major purposes prolongs the recession and thus is not good for the economy, while normally saving grows the economy.
- Compare monetarist and Keynesian views on the proper conduct of FISCAL POLICY. For both monetarists and Keynesians, explain not only their conclusions concerning fiscal policy but also how those conclusions are related to their respective theories.Which of the following statements do economists NOT agree on? a. Increases in the money supply shift aggregate demand to the right. b. In the long run, increases in the money supply increase prices, but not output. c. Recessions are associated with decreases in consumption, investment, and employment. d. Government should use fiscal policy to try and stabilize the economy.Define the following: -Inside lag -Outside lag Which has the longer lag-monetary or fiscal policy? Which has the longer outside lag? Give reasons for your answer?