2.18 Privatizing a state enterprise or establishment that is losing money, helps to improve the Treasury's fiscal deficit in several ways. True O False O Defend your answer:
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- True-False with explanationA monetary expansion only changes inflation on the long runCover A strong dollar is normally expected to cause: O low unemployment and low inflation in the U.S. O high unemployment and high inflation in the U.S. O high unemployment and low inflation in the U.S. O low unemployment and high inflation in the U.S. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.1. Which of the following is concerned with changing the aggregate demand of thenation?A) External balanceB) Internal balanceC) Expenditure-changing policiesD) Expenditure-switching policiesAnswer: 2. Which of the following is an example of an expansionary monetary policy?A) Increase in TaxesB) Increase in the nation's money supplyC)Increased government expendituresD) Reduction in taxesAnswer:
- How does high inflation lead to a recession in the country? Explain the role ofthe Government and the Central Bank to address the economic recessionproblem by using appropriate fiscal and monetary policies. Are there anypotential problems with such policies? Please answer in detailA) Assume that in response to the corona crisis, Portugal experiences a decrease in output of 1% and it is associated with a rise in the unemployment rate of 2 percentage points. What Is Okun's coefficient? a. 0.4 b. -2.0 c. -0.4 d. 2.0 B) Which statement is true. When the short-term interest rate in the Euro area is at zero percent. a. The ECB according to its mandate, cannot further reduce the policy rate b. The ECB can stimulate the economy by lending directly to the government c. The ECB can buy assets to reduce the long-term interest rates. d. The ECB can steepen the Phillips curve by reducing the bargaining gap.Consider two countries, A and B. In A, new technologies (e.g., mobile payment apps and cryptocurrencies) have been enthusiastically adopted by the population, thereby reducing the proportion ofincome that is held as real money balances. Over this period, no such changes occurred in B. Ifthe rate of money growth and the growth rate of real GDP were the same in A and B over thisperiod, then how would the rate of inflation differ between the two countries?
- The central bank of the Dominican Republic decides to pursue acontractionary monetary policy. Provide a table with the money supply data and inflationrate for the Dominican Republic for 2014 - 2019.(c) Based on the data from the Dominican Republic, do you agree with thecentral bank’s decision to pursue a contractionary monetary policy? Explain why orwhy not. (d) Identify a newspaper article from the Dominican Republic that provides asituation in which a contractionary monetary policy was implemented by the centralbank. Ensure that you provide a screenshot of the article in your submission. Thescreenshot should include the name of the publication, date of publication and nameof the article.(i) Identify the contractionary monetary policy used in the article. (ii) Carefully explain, in as much detail as possible, how the chosen action from thearticle will impact the money market. (iii) Illustrate using the money market diagram, the overall impact of the chosen actionfrom the article on…How does high inflation lead to a recession in the country? Explain the role ofthe Government and the Central Bank to address the economic recessionproblem by using appropriate fiscal and monetary policies. Are there anypotential problems with such policies?( Answer in 1000 words)European Central Bank will keep its aggressive monetary stimulus that is, expansionary monetary policy in place, where as US will not continue to do so. "With the help of an equation", explain the effect of this on the long run depreciation of the US dollar
- The central bank of Trinidad and Tobago decides to pursue acontractionary monetary policy. Provide a table with the money supply data and inflationrate for Trinidad and Tobago for 2014 - 2019.Based on the data from Trinidad, do you agree with thecentral bank’s decision to pursue a contractionary monetary policy? Explain why orwhy not.A fiscal expansion coupled with a monetary expansion must always causea) Output to riseb) Output to fallc) Interest rates to rised) Interest rates to fallOn the topic of "Stabilization Policies, Monetary Institutions and Strategies" Suppose that it there is an expected increase in the production productivity. Using AE/PC Model, explain the followings with the aid of graphs. a) What will be the impact on current inflation and on output if the central bank does not involve to the market (do nothing)? b) Assume that initially inflation equals to the central bank’s inflation target and an output gap of zero. When the shock occurs, what are the options that the central bank has to influence to the market?