Assuming a constant money supply, government expenditures can be financed by which of the following? Check all that apply. Тахes Interest rate Borrowing Money supply True or False: Keynesian economists argue that the government can fight inflation by implementing expansionary fiscal policy. True False

Assuming a constant money supply, government expenditures can be financed by which of the following? Check all that apply. Тахes Interest rate Borrowing Money supply True or False: Keynesian economists argue that the government can fight inflation by implementing expansionary fiscal policy. True False

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 5P

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Similar questions

What is the main advantage of automatic stabilizers over discretionary fiscal policy?
Under what general macroeconomic circumstances might a government use expansionary fiscal policy? When might it use contractionary fiscal policy?
Explain how automatic stabilizers work, both on the taxation side and on the spending side, first in a situation where the economy is producing less than potential GDP and then in a situation where the economy Is producing more than potential GDP.
What would happen if expansionary fiscal policy was implemented in a recession but, due to lag, did not actually take effect until after the economy was back to potential GDP?
Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending by the University of Illinois is not fiscal policy? Why is a cut in the payroll tax fiscal policy whereas a cut in a state income tax is not fiscal policy?
What is the main reason for employing contractionary fiscal policy in a time of strong economic growth?
What are some of the ways fiscal policy might encourage economic growth?
In a recession, does the actual budget surplus or deficit fall above or below the standardized employment budget?
Assume there is no discretionary increase in government spending. Explain how an improving economy will affect the budget balance and, in turn, investment and the trade balance.
How would a balanced budget amendment change the effect of automatic stabilizer programs?
What would happen if contractionary fiscal policy were implemented during an economic boom but, due to Lag, it did not take effect until the economy slipped into recession?