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Fiscal Policy instruments include:
a) quantitative easing
b) money supply manipulation
c) adjusting interest rates
d) varying tax rates
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Solved in 2 steps
- A cyclically adjusted budget deficit is also called a: Select one: national budget deficit document. built-in stabilizer. full- employment deficit. cyclical deficit. recession-caused deficit.Compare and contrast the strengths and weaknesses of fiscal policy and monetary policy. In 1300 wordsFiscal policy refers to Group of answer choices the techniques used by a business firm to reduce its tax liability. the spending and taxing policies used by the government to influence the economy. the government's ability to regulate a firm's behavior in the financial markets. the behavior of the nation's central bank, the Federal Reserve, regarding the nation's money supply.
- Supply-side fiscal policy initiatives include the following items EXCEPT: Group of answer choices R&D tax credits Education policies (subsidies or tax breaks) Lower corporate profit tax rates Open market operationsOwn perceptive, own ideas, own point of views and reasonable arguments about concept of fiscal policy and monetary policyWhich of the following economic schools of thought promote the use of fiscal policies to stimulate spending during periods of recession * Monetarists Keynesians Classical Supply-side economics
- Lower marginal tax rates can increase total tax revenues is a tenet of A) deficit financing. B)mercantilism. C) the flat -tax proposition. D) the supply-side economics argument.Elements of fiscal policy that move the budget toward surplus as the economy expands and toward deficit as it contracts are called ________. A. discretionary monetary policy actions B. automatic stabilizers of fiscal policy C. discretionary fiscal policy actions D. automatic stabilizers of monetary policyA cyclical deficit reflects__________, while a structural deficit reflects ___________ fluctuations in federal revenues at full employment under prevailing fiscal policy; fluctuations in the costs of maintaining programs and policies that are increasing faster than revenues. fluctuations in budget deficit due to automatic stabilizers for entitlement programs; fluctuations in economic activity caused by a decline in the economy. fluctuations in economic activity as a result of discretionary fiscal policy; fluctuations in the costs of maintaining programs and policies that are increasing faster than revenues. 4. fluctuations in deficit spending due to contraction of the macro economy; fluctuations in federal revenues at full employment under prevailing fiscal policy.
- Treasury yields have climbed in recent months along with investors’ expectations for a strong economic rebound, driven in part by more debt-financed government spending. True or FalseProjected future expenditures on entitlement programs such as Social Security and Medicare are expected to lead to increasingly large federal budget deficits in future decades. Factors behind this trend include: - An unusual sense of entitlement among baby boomers - Increasingly generous benefits - A growing proportion of retirees to workers - Increasing life expectancyA government is facing a significant budget deficit due to high levels of public spending and declining tax revenues. To address this, several measures are being considered, including cutting public expenditures, increasing taxes, and implementing more efficient tax collection methods. The impact of a budget deficit on an economy can include increased national debt and potential inflationary pressures. In this situation, the most effective approach to address the budget deficit would be:A) Borrowing more funds internationallyB) Cutting essential public servicesC) Increasing taxes and improving tax collectionD) Privatizing all public services 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.
