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- During the most recent recession, some economists argued that the change in the interest rates that comes about due to deficit spending implied in the demand and supply of financial capital graph would not occur. A simple reason was that the government was stepping in to invest when private firms were not. Using a graph, explain how the use by government in investment offsets the deficit demand.Explain how to use quantitative easing to stimulate aggregate demand.C21. Discuss the effects of using 'monetization of fiscal deficit' as a policy on the economy of a country.
- The economy is characterized as: C=100+0.8Yd G=T =50 I=50-25i MS=200 P=1 Md=Y-25i 1. What is the budgetary deficit? 2. What is the total demand for money? 3. What is the equilibrium interest rate?Explain the difference between fiscal policy and monetary policy. Explain also 2 advantages and 2 disadvantages of both policies.Explain the relationship between fiscal policy and the interest elasticity of money demand. Why do the two relationships differ?
- Discuss the similarities and differences between monetary policy and fiscal policy as a tool toregulate an economy? no referance material and can you answer me as soon as possibleIn detail explain what is going on in this graph for effective federal funds ratea) Discuss the monetary policy origins of asset price bubbles. What are the potential remedies? b) Would bond financed budget deficit be less inflationary than the latter financed by new money? A detail answer would be appreciated
- 98 please quicly thanks! All things equal, an autonomous increase in government purchases causes _____ the budget deficit function. a.A downward movement along. b.A downward shift of. c.An upward movement along. d.An upward shift of. e.No change in.Oman’s government will finance most of its budget shortfall in 2021 by borrowing to plug a fiscal gap battered by a decline in oil prices and the coronavirus pandemic. The Persian Gulf state is looking into borrowing that will cover 73%, or 1.6 billion rials ($4.2 billion), of the country’s 2.2 billion-rial shortfall, with the remaining 600 million rials to be drawn from its reserves, according to a post on Twitter by the state-run Oman News Agency on Friday. The government based its 2021 budget plan on an oil price of $45 per barrel. Other highlights from Oman’s 2021 budget: Expenditure is set to fall to 10.8 billion rials, a 14% drop from the previous year. 2021 revenue is set to fall to 8.6 billion rials, a 19% decline. Budget deficit at 8% of gross domestic product in 2021, 2.2 billion rials. Oman has taken measures such as reduced spending and plans to impose a 5% value-added tax in 2021. It will implement developmental projects valued at 371 million rials as part of the effort…Oman’s government will finance most of its budget shortfall in 2021 by borrowing to plug a fiscal gap battered by a decline in oil prices and the coronavirus pandemic. The Persian Gulf state is looking into borrowing that will cover 73%, or 1.6 billion rials ($4.2 billion), of the country’s 2.2 billion-rial shortfall, with the remaining 600 million rials to be drawn from its reserves, according to a post on Twitter by the state-run Oman News Agency on Friday. The government based its 2021 budget plan on an oil price of $45 per barrel. Other highlights from Oman’s 2021 budget: Expenditure is set to fall to 10.8 billion rials, a 14% drop from the previous year. 2021 revenue is set to fall to 8.6 billion rials, a 19% decline. Budget deficit at 8% of gross domestic product in 2021, 2.2 billion rials. Oman has taken measures such as reduced spending and plans to impose a 5% value-added tax in 2021. It will implement developmental projects valued at 371 million rials as part of the effort…