Fill in the blanks with the correct set of words to make the following sentence accurate. Due to the COVID-19 pandemic, the Canadian federal government its so that spending would help stabilize the Canadian economy. The COVID-19 pandemic resulted in interest rates as monetary policy was used to bolster the fiscal policy initiatives. O a. increased; borrowing; temporary; low Ob decreased; borrowing; permanent; low O c. increased: borrowing; permanent; low Od. increased; borrowing: permanent; high O e. decreased; borrowing: temporary; high Of. increased; spending; temporary: low

Fill in the blanks with the correct set of words to make the following sentence accurate. Due to the COVID-19 pandemic, the Canadian federal government its so that spending would help stabilize the Canadian economy. The COVID-19 pandemic resulted in interest rates as monetary policy was used to bolster the fiscal policy initiatives. O a. increased; borrowing; temporary; low Ob decreased; borrowing; permanent; low O c. increased: borrowing; permanent; low Od. increased; borrowing: permanent; high O e. decreased; borrowing: temporary; high Of. increased; spending; temporary: low

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 1DQ

See similar textbooks

Similar questions

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?
explanation. Be sure to exp Assume the United States has been in another recession for the past 10 months. Unemployment is 10% and GDP has dropped $1.9 trillion from its previous peak of $ 20.8 trillion. The housing and heavy equipment industries have been hit the hardest. Inflation has been near the 2% target but has started to dip below. Also, the countries average MPC is 60. Determine the best fiscal policy/strategy to help the economy recover and explain why it is the best choice. Be sure to reference Aggregate Demand and Aggregate Supply and explain your specific tools in your answers. Calculations Explanation Graph (More space for the explanation on the back)
'The U.S., world's largest economy, went into recession in February of 2020. It has taken a broad range of steps to combat the economic disruption caused by COVID-19. In response to this crisis, governments have enacted sweeping and sizable fiscal stimulus of trillions of dollars.' Is it an appropriate policy response if the primary responsibility of the government is to maintain economic growth? Explain the significance of Fiscal policy for an economy? Is there any difference in the two approaches of fiscal expansion through - direct transfer benefit and government spending directly on purchase of goods and services that may influence real GDP? What role does multiplier play? Explicate. Support your answer with the suitable diagram/s.
Discuss the current Fiscal Policy with the impact of the coronavirus on macroeconomics in place to support the US economy. Also, explain how the Fiscal Policy is expected to impact GDP, Inflation and unemployment. Plz do fast asap
NEXT A BOOKMARK Question 12/28 to stimulate the economy. 2 During a recession, the government can engage in A Expansionary fiscal policy B Cautionary fiscal policy Contractionary fiscal policy D Deflationary fiscal policy DELL esc -> # 2$ & 1 4 6. 8. 9. * 00 司 5
Expansionary fiscal policy include Select one: O a. an increase in net taxes O b. an increase in government spending O c. a decrease in government spending
The table below shows hypothectical figures of revenue and spending for the Canadian government. For simplicity, assume that all of the spending grants to other levels of government were spent in Canada on goods and services. REVENUES Personal income taxes Corporate income taxes $120 28 2 48 18 Other revenues 21 Total Revenues 237 a. The projected NTR in this budget plan is $ b. The value of NTR less government spending on goods and services (G) is $ Round your answers to 1 decimal place. c. The percentage of total revenue made up by personal income taxes is d. The percentage of total revenue made up by corporate income taxes is e. The percentage of total outlays made up by transfer payments to persons is f. The percentage of total outlays made up by public debt charges is Federal Government's Budget Plan for Fiscal Year ($billion) OUTLAYS Other income taxes GST and excise taxes EI premiums Transfers to persons Spending grants to other levels of government Public debt charges Direct…
EXPANSIONARY FISCAL POLICY 20% GOVERNMENT SPENDING 80% TAKATION Gvemme Spnding Taationmater than pter than tation apud How will Expansionary Fiscal Policy affect the Federal Budget? A budget surplus will decrease the national debt Deficit spending will decrease the national debt Deficit spending will increase the national debt A budget surplus will increase the national debt
The suitable combination of fiscal policy during the high risk of COVID-19 pandemic is I. increased government spending. II decreased government spending. III increased taxes. IV. decreased taxes. a.I and III b.II and III c.I and IV d.II and IV
Question 10/28 NEXT A BOOKMARK is when the amount of government expenditures is greater than its revenue. A budget deficit B budget surplus budget windfall Dbudget depression DELL -> ロ|
Some politicians have suggested that the United States enact a constitutional amendment requiring that the Federal government balance its budget annually. Such an amendment, f strictly enforced, would force the government to enact a contractionary fiscal policy whenever the economy experienced a severe recession. This is because when the economy enters a recession, 0000 net tax revenue falls and transfer payments rise. Balancing the budget would require raising transfer payments and raising taxes. net tax revenue rises and transfer payments fall. Balancing the budget would require raising transfer payments and lowering taxes. net tax revenue falls and transfer payments rise. Balancing the budget would require lowering transfer payments and raising taxes net tax revenue rises and transfer payments fall. Balancing the budget would require lowering transfer payments and lowering taxes
Social Security and Medicare create a fiscal gap because _______. A. the benefits today exceed the tax revenues to support these programs B. outlays on these programs today minus tax revenues contribute to the government budget deficit C. future generations will have to pay for the benefits received by the current generation D. the present value of current and projected future outlays exceeds those of future tax revenues