Is savings harmful or beneficial to the economy? Contrast the two views on this issue.

Q: Through what channels might QE affect real GDP

A: Quantitative easing refers to a form of an unconventional monetary policy wherein the central bank…

Q: Suppose a closed economy has an aggregate savings equal to 150 and intended investment equal to 400.…

A: Investment= public savings+ private savings. 400 = public savings+ 150 Public savings = 400-150=250

Q: How does minimizing business or personal debt help prevent bankruptcies in a recession?

A: Business and personal debt refers to the borrowing by the people to do business or personal…

Q: How distortions affect the market of tradable and non-tradable goods and how it affects the…

A: the Market of tradeable goods refers to the industries whose goods are traded in international…

Q: Every policy must have two parts. Explain these two parts with examples of each.

A: The two parts of the policy include monetary policy initiated by the government and fiscal policy…

Q: Based on your understanding of government economic policy, which of the monetary or fiscal policy…

A: Fiscal policy refers to the government policy that stabilizes th economy through bring changes in…

Q: how do multipliers affect the outcomes?

A: In economics, changes or fluctuation in market variables may affect the final outcome obtained by…

Q: How an economist thinks that the economy works—is it self-regulating or not?—influences his opinion…

A: SELF REGULATING ECONOMY. Classical economists believe in self-regulating economy. Wage rate and…

Q: Review one government policy implemented between 2000-2010 and discuss the multiplier effects it had…

A: Government can adopt various policies as a measure to improve the economic growth. In between…

Q: I need you to solve this question as soon as possible Suppose that Parliament increases taxes to…

A: Economy is the a system where peoples earn livelihood . and it changes through many economic…

Q: What is the main objective and sources of public finance? According to macro economics

A: Public Finance is referred to as government activity that includes taxation, government spending and…

Q: The economist views the budget as a public policy making tool? True or false

A: False. Reason- Economists view the budget as the opportunity cost. They see budget as the…

Q: When a goverment takes steps to decrease the interest rate, how does this affect borrowers? How…

A: Interest rate: A loan fee is the level of chief charged by the moneylender to utilise its cash. The…

Q: Does MPC matter when using taxes to stimulate the economy in the short-run?

A: The stimulation of the economy using taxes involves fiscal policy. The expansionary/contractionary…

Q: If I had a federal budget that was typically balanced where new taxes causes $100 billion surplus.…

A: The federal budget is an itemized plan for the United States' yearly public spending. It is used to…

Q: Briefly suggest Fiscal Policy or Monetary Policy Measures or Mix of Both to minimize the effects of…

A: Countries can respond to the COVID-19 pandemic with massive economic responses such as increasing…

Q: Why does the budget require a forecast of the economy? Under what circumstances would actual…

A: A budget is a financial document or the financial plan of an economy which includes the planned…

Q: What is the importance of national finances on society economic

A: Meaning of Economic Development: The term economic development refers to the situation under which…

Q: During a recession, the government can help the economy by   a. decreasing taxes.   b. buying…

A: During a recession, the government can help the economy by decreasing taxes as it will allow public…

Q: Which of the monetary or fiscal policy tools do you think would be most effective at improving the…

A: Monetary policy is given down by the CB. It is a management of money supply and interest rate. Its…

Q: Should governments restrict personal freedoms during times of economic crisis? Explain your answer.

A: Economic Crisis The term economic crisis refers to a circumstances in which a country's economy…

Q: How is fiscal and monetary policy used by the Canadian government if the economy seems to be…

A: When the economy is slipping into recession the government needs to implement an expansionary fiscal…

Q: What type of policy is made up of fiscal and monetary policy?

A: Both fiscal and monetary policies are implemented with the aim of making the economy free from…

Q: Is either helicopter money or quantitative easing preferred in times of severe recessions in order…

A: The term Helicopter Money is given by Milton Friedman in 1969. It means dropping money from the…

Q: What is an inappropriate use of monetary and fiscal policy?

A: When it comes to influencing macroeconomic outcomes, governments have traditionally used one of two…

Q: What are the features of liberalization policy in the economy?

A: According to the given question In simple words we can say that liberalization is basically the…

Q: When unwanted inventories pile up in retail stores, how is production affected?  What are the steps…

A: When the inventories pile up in retail stores, then the stores will first try to clear the stores by…

Q: Why is investment spending unstable?

A: The investment is the process of spending the money for making more returns from the fir or process…

Q: Why do rich people have a higher marginal propensity to save than poor people?

A: In economics, the term marginal propensity to save (MPS) depicts the proportion of aggregate raise…

Q: Show that if the multiplier is one, the slope of the savings schedule is one.

A: Multiplier really intends that with expansion in speculation there is ordinarily expansion in pay.

Q: Which of the monetary or fiscal policy tools do you think would be most effective at improving the…

A: Fiscal policy refers to the government policy that stabilizes the economy through bring changes in…

Q: Differentiate between fiscal and monetary policy in brief.

A: Monetary policy: When the policy measures are being taken by the central bank of a country in order…

Q: Explain why the sum of marginal propensity to consume and marginal propensity to saving it's equal…

A: Marginal propensity to consume (MPC) refers to the slope of the consumption function. MPC is the…

Q: When the value of average propensity to save is negative, then the value of marginal propensity to…

A: # marginal propensity to save refers to the diesel dollar which is saved out of the income and which…

Q: Why is there a trade-off between the amount of consumption that people can enjoy today and the…

A: Why is there a trade-off between the amount of consumption that people can enjoy today and the…

Q: Tools of monetary policy and fiscal policy?

A: Fiscal policy refers to the government policy that stabilizes the economy through bring changes in…

Q: Are the gains achieved or losses incurred by delaying consumption?

A: Delaying consumption is gainful

Q: Do you think policy makers should attempt to stabilize the economy ? Why ?

A: Every country has its goals and these goals can be achieved by using micro and macro tools in an…

Q: When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy?…

A: The government can stabilize the economy with the help of Monetary and Fiscal Policy.Fiscal Policy:…

Q: Mention a type of fiscal policy or monetary policy that is currently being implemented. Then discuss…

A: The fluctuation in the economic activity is tracked by the business cycle. In an economy, the fall…

Q: In the Savings-Investment model, what is the effect of an increase in government spending on…

A: Saving – investment diagram represents if one parameter of this model changes how investment…

Q: Even during a financial recession, consumers tend to increase spending in _______

A: A downturn is a time of declining monetary and economic performance across a whole economy that can…

Q: what is the difference between monetary and fiscal policy?

A: Economic policies can be defined as a course of actions that governments take in the economic field.

Q: If taxes are reduced , will most people save more or less than before ? Does national saving rise or…

A: The aggregate spending behaviors of families and public and private substances can swiftly influence…

Q: How does shadow economy affect GDP?

A: The shadow economy is the economic activity that is not declared activates and for which taxes…

Q: Which best describes why the multiplier exists? When people spend money, that money ends up in the…

A: Multiplier is an economic term which shows that an input widens the effect of other variables.