Explain the monetary policy and fiscal policy and the differences between them. Comment on the impact of these policies on consumers and businesses.
Q: Who sets fiscal policy? a. the U.S. Treasury and the U.S. Congress b. Congress and the…
A: The fiscal policy is the way by which a government adjusts its spending levels and tax rates to…
Q: The importance of fiscal policy during times of economic recession.
A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…
Q: When an economy is already at full employment, what is the outcome of expansionary fiscal policies…
A: The fiscal policy is an automatic stabilizing policy in which the government either use it spending…
Q: Give an example of a monetary policy action that could produce an increase in aggregate demand. Give…
A: AD(aggregate demand) is the sum of C(consumption), I(investment), G(government spending) in closed…
Q: Find the value of the primary deficit if the fiscal deficit is 186 and the interest payment by the…
A: The variable that captures the borrowing requirements of the government other than the obligation…
Q: Suppose the economy goes into a recession, and there are no changes the Federal Government’s tax…
A: A recession is a temporary period of economic decline which leads to a fall in GDP for two…
Q: 1. The economy starts out with a balanced Federal budget. If the government opts to implement…
A: Fiscal policy refers to the policy of the government to control the money supply in the economy.…
Q: Describe the role of fiscal policy in the 20th century during the so-called US “golden age” period,…
A: The AD-AS model explains the Keynesian model and its effect on the price level and the quantity of…
Q: primary differences between fiscal policy and monetary policy. For each, use an example from the
A: Fiscal policy and monetary policy are two very important strategies that are essential for…
Q: What is the reason why fiscal policy should be in tune with monetary policy when the economy is in…
A: Recession is a period of time in an economy when there is low or slow growth in economy wherein the…
Q: Typical goals for fiscal policy are A. high employment and price stability. B. high prices for…
A: Fiscal policy: These are the policy measures that are often being introduced by governments around…
Q: Suppose that the economy is slumping into recession and needs a fiscal-policy boost. Voters,…
A: Fiscal Policy deals with government spending and changes in tax rates where as monetary policy…
Q: Suppose the economy goes into a recession, and there are no changes the Federal Government’s tax…
A: A recession is a period of economic slowdown. Recession is characterized by a decrease in…
Q: Calculate the interest payments when Fiscal deficit is $18,000 and the primary deficit is $10,000
A: # we know that the sum of primary deficit and interest payment always gives us the value of fiscal…
Q: Identify a change in fiscal policy that will shift the composition of output toward investment.…
A: When a contractionary fiscal policy is adopted, it reduces government spending and raises taxes,…
Q: What is expansionary fiscal policy? What is contractionary fiscal policy? Does expansionary fiscal…
A: In Keynesian macroeconomic theory, aggregate demand plays a very major role in stabilizing the…
Q: How will a contractionary fiscal policy affect a budget deficit? A.) Debts will…
A: Budget deficit refers to the amount of expenditure of a government that surpasses/exceeds the total…
Q: Supply-side fiscal policy targets which of the following? A) Long-run Aggregate Supply B) Short-run…
A: Supply-side fiscal policy states that increasing the supply of goods pushes the economy of the…
Q: Governments may achieve certain economic goals; say controlling inflation or boosting economic…
A: Answer: All the economic goals such as controlling inflation, boosting growth, increasing…
Q: Distinguish between deficit and debt.
A: Deficit refers to the outflow of money that is greater than the inflow of money. For example, a…
Q: explain why the government deficit rises as the economy contracts and why the government deficit…
A: The government budget refers to a fiscal or financial statement that includes all the receipts (or…
Q: Why the aggregate supply (AS) curve is relatively flat within the low ranges of aggregate output and…
A: Aggregate supply refers to the total value of goods and services available for purchase at a…
Q: Which of these is MOST LIKELY to occur after the government increases taxes? A.) Consumer…
A: When taxes are increased, consumers' spending reduces as disposable income falls. Consumers are left…
Q: Which is considered expansionary fiscal policy? a)a tax increase for wealthy individuals b)an…
A: Fiscal Policy is the use of tax policy and the government expenditure that can influence the…
Q: The reason why fiscal policy should be in tune with monetary policy when the economy is in the…
A: Hey, thank you for the question. Since there are multiple questions posted, we will answer first…
Q: Fill in the blanks : During [A Recession / Periods of Inflation], Congress could [Raise / Cut] taxes…
A: The fiscal and monetary policies are used by the governments to achieve certain economic goals. They…
Q: How is monetary policy linked with fiscal policy? Comment.
A:
Q: Explain the difference between fiscal policy and monetary policy. Explain also 2 advantages and 2…
A: Macroeconomics is a branch of economics which studies the economy as a whole while considering…
Q: Describe the roles of government bodies that determine fiscal policy. Explain fiscal policies’…
A: The role of government bodies that determine fiscal policy are as follows: The government fiscal…
Q: Which of the following terms is used to describe the set of policies that relate to government…
A: Government taxes and spending influence economic circumstances, notably macroeconomic factors like…
Q: Calculate the interest payments when Fiscal deficit is $18,000 and the primary deficit is $10,000.
A: Given data: Fiscal deficit is $18000 Primary deficit is $10000
Q: One criticism of the fiscal policy ineffectiveness is because: A.the velocity of money is…
A: Fiscal policy: Through the use of government expenditure and tax measures to control economic…
Q: An increase in the budget deficit is the result of: (a) Expansionary monetary policy (b)…
A: A budget deficit occurs when the actual expenses of the government exceed the planned expenses.
Q: A recent New York Times article stated: "Recent debates in the House considered tax cuts and tax…
A: The fiscal policy used the tools such as government spending and taxes to ensure that there is…
Q: The government has many tools at its disposal to help create stability for an economy. Explain the…
A: The use of government spending and taxation for influencing the economy is known as fiscal policy.…
Q: How can a budget deficit be reduced? Group of answer choices Decreasing government spending…
A: Ans. A. Decreasing government spending and/or increasing taxes A budget deficit is a situation when…
Q: 1.The fact that it takes time for government officials to recognize an economic problem in is one…
A:
Q: "If I am elected I will reduce the deficit" -every politician in history Which of the following best…
A: Deficit is the gap between spending and earning. A government facing a fiscal deficit means it has…
Q: What kind of fiscal policy will you use to fight against inflation. Explain it briefly.
A: Fiscal policy refers to changes in the federal government purchases and taxes, which are intended to…
Q: What should be done to combat inflation or an economy that is growing too quickly using fiscal…
A: Answer: When an economy is experiencing inflation or growing too quickly then the contractionary…
Q: Expansionary fiscal policy increases the government budget deficit. True, False, or Uncertain?…
A: Fiscal policies are the policies that are managed by the government with the aim of influencing…
Q: Comment on either (a) the type of fiscal policy or monetary policy that is currently being…
A: In order to improve and balance economy government of fiscal policy and the central bank adopt…
Q: onary Fiscal Policies while others are in favor of Expansionary Monetary Policies. Prepare a…
A: Monetary policy involves changing of the interest rate and influencing the supply of money.Fiscal…
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- Explain what kind of fiscal policy and what kind of monetary policy are likely to reduce GDP.Fiscal Policy is conducted by:______________________, and Monetary Policy is conducted by:_______________________. The Fed Congress and the PresidentHow is monetary policy linked with fiscal policy? Comment.
- Explain the instruments of monetary and fiscal policy?what type of fiscal policy or monetary policy that is currently being implementedAn increase in the budget deficit is the result of:(a) Expansionary monetary policy(b) Contractionary monetary policy(c) Expansionary fiscal policy(d) Contractionary fiscal policy
- Mention a type of fiscal policy or monetary policy that is currently being implemented. Then discuss how government spending, taxes, or interest rates are being changed.Discuss an example of a fiscal policy and monetary policy that is used to control inflation and how the policy can affect unemployment or employment levels.if you were the leader of a country and you had control of fiscal and monetary policies, what would you likely do with the use of fiscal and monetary policies before the next general election?
- what are the monetary and fiscal policy before pandemic and policy after pandemic in the world including Asian countries.Considering what you've learned about both fiscal and monetary policy, what are some of the benefits you might see from using monetary policy instead of fiscal policy to address common economic downturns? What could be some of the disadvantages?what is fiscal policy, monetary policy and its advantages and disadvantages?
