One of the advantages monetary policy in relation to fiscal policy is that: a. It is easier to control b. It reduces the role of the state in the economy C. It can be adjusted faster if necessary d. It makes it more difficult to engage in speculation

One of the advantages monetary policy in relation to fiscal policy is that: a. It is easier to control b. It reduces the role of the state in the economy C. It can be adjusted faster if necessary d. It makes it more difficult to engage in speculation

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Six Debates Over Macroeconomic Policy

Section23.3: Should Monetary Policy 8e Made By Rule Rather Than By Discretion?

Problem 3QQ

See similar textbooks

Related questions

Q: Explain, what kind of monetary policy can be used to fight against recession and depression.

A: The Fed is also known as central bank, which aims to promote economic stability by controlling the…

Q: Why is it so difficult to "fine-tune" the American economy using discretionary macroeconomic policy?…

A: In macroeconomics, the discretionary policy is described as an economic policy that is decided by…

Q: a) Identify the four major tools of monetary policy. b) How can monetary policy address the problem…

A: To control the money supply and achieve sustainable economic goals central banks of the country use…

Q: How is a monetary policy rule helpful for understanding U.S. monetary policy?

A: The credit-control system adopted by the central bank of a country to achieve its macroeconomic…

Q: There are so many macroeconomic problems which appear time by time to affect the economic…

A: Pakistan is a country which have many problems like poverty, sectarianism, terrorism, political…

Q: Why central bank can be semi government ?

A: Semi-Government: A semi-government business is one that is owned by private firms and is…

Q: If the central bank desired to increase spending in the economy, using the instruments ofmonetary…

A: Monetary policy is used by the federal reserves also known as the central bank of an economy to…

Q: Monetary policies can work only if private enterprises respond to them in certain way; if they…

A: Monetary policy is the practices and interactions of a central bank which regulates the availability…

Q: Compare and contrast n the Classical, Keynesian and Monetarists view of monetary policy. Include in…

A: Monetary Policy of the nation is regulated by the central or the federal bank. Today , there are…

Q: Feds put $23.5 trillion back into the market which Went back into the rising bill stock market.…

A: 2007-2008 debt crisis is also known as subprime debt crisis which is caused by a large amount of…

Q: b) Explain the type of monetary policy used by central banks to overcome global recession.

A: A critical job of central banks is to direct monetary policy to accomplish value soundness (low and…

Q: a. Which graph below depicts the Keynesian view of the money market? Which is the monetarist view? A

A: a. Keynesian view is that money demand is elastic. Graph A Monetarist view is that money demand is…

Q: the minister of finance in conjunction with the south african reserve bank (SARB) and treasury…

A: The monetary and fiscal policies are used by the governments to achieve certain economic goals. The…

Q: a) Which of the three policies below do you think would be most effective? Policy 1: Increments…

A: Policy 1: Central bank adopts the tight or contractionary monetary policy To control inflation the…

Q: a) Discuss monetary policy and fiscal policy by comparing and contrasting their effacts in the short…

A: a) Monetary policy measures are being taken by the central bank of a country in order to expand or…

Q: 17. When a Central Bank buys government bonds from banks, this is a. restrictive monetary policy b.…

A: Given: Suppose the central bank buys government bonds from the banks. Monetary policy and Fiscal…

Q: What are the objectives of monetary policy? and what are the goals of monetary policy in harmony or…

A: Monetary policy is defined as the process by which central bank of the country and manage supply of…

Q: A large state's senator recently made a speech condemning the continuous deficits in the federal…

A: Monetary and fiscal policies are both macroeconomic instruments used to steer or boost the economy.…

Q: When the economy is in recession and the Fed wants to do expansionary policy, explain what all 4…

A: In the United States, Fed is the central bank who performed Monetary policies to deal with business…

Q: Feds put $23.5 trillion back into the market, which Went back into the rising bill stock market.…

A: 2007-2008 debt crisis is also known as subprime debt crisis which is caused by large amount of…

Q: What is the basic objective of monetary policy? What are the major strengths of monetary policy? Why…

A: The monetary policy is used by the monetary authority or the central bank of the nation. There are…

Q: Show as a diagram and explain the time lags in monetary policy

A: Ineffectiveness of economic policies such as Monetary and Fiscal policy are due to time lags that…

Q: What's wrong with this way of thinking? "When the government runs a budget deficit, it simply pays…

A: Assume that the government is running a budget deficit in the economy. It means the government…

Q: a) Discuss monetary policy and fiscal policy by comparing and contrasting their effects in the short…

A: (a) Monetary Policy An expansionary monetary policy causes the output to rise, the price level to…

Q: To Promote FISCAL POLICY MONETARY POLICY current Fee Tool #1 Tool #2 Tool #3 INCREASE INCREASE BUY…

A: Economic policy refers to the actions taken by the government in the economic arena. It covers fixed…

Q: Hello, I would like help with this assignment Thank you! Monetary Policy Assume the economy is…

A: a.Inflation is a situation in the economy, when there is general rise in the price level of goods…

Q: Increasing government spending

A: Option (B). Government actively increases spending in response to recession, so it's an active…

Q: 3. Fiscal policy can be an inappropriate macroeconomic stabilization tool, since A) it has a larger…

A: When talking about stabilization policies, it can be said that it is the government and Central Bank…

Q: Policy? Statement 1: An inside lag exists between the time a policy change is needed and the time…

A: Fiscal policy refers to the actions taken by the government to interfere in the economy. Monetary…

Q: What specific tools did the Germany government use to conduct the monetary policy during the time of…

A: For tackling a recession, the government would tend to implement an expansionary fiscal policy. The…

Q: QUESTION 11 Increasing the interest rates is an expansionary monetary policy. O True False

A: Monetary policy refers to the policy of the central bank under which it uses policy instruments to…

Q: Discuss the concept of "monetary policy". Explain the types of monetary policies and the means to…

A: Inputs from a range of sources are used to construct monetary policy. The monetary authority may…

Q: a) Discuss monetary policy and fiscal policy by comparing and contrasting their effects in the short…

A: The monetary policy of the economy is conducted by the central bank of the economy and the monetary…

Q: Please thoroughly and completely explain how the 3 tools of monetary policy would work to address…

A: Answer - 3 tools of monetary policy would work to address the problem of inflation -1. Tightening…

Q: How do the monetary policy tools of the European System of Central Banks compare to the monetary…

A: The Federal reserve bank was established in 1913, under the Federal Reserve Act of 1913. The…

Q: Monetary policies can work only if private enterprises respond to them in certain way, if they…

Q: he hysteresis hypothesis believes that... a. The path of an economy's real GDP can influence its…

A: In economics, there are various hypothesis used by economists to explain different economic…

Q: The Bank of Sweden inflation target is 2 % - which is a very common central bank goal. Why is it not…

A: Inflation rate refers to the general rise in the inflation rate. The inflation rate is worrisome for…

Q: Monetary policy is often more effective than fiscal policy because It is blunter and more…

A: The nations tend to have various policy makers, and decision makers, who are involved in making of…

Q: Economics If the Fed wants to move from a point on the short-run Phillips curve representing high…

A: A Phillips curve represents the relationship between the rate of unemployment and the rate of the…

Q: How does rule-based monetary policy differ from discretionary monetary policy(that is,monetary…

A: Action taken in response to change in the economy is discretionary monetary policy, it does not…

Q: a) Below is a monetary policy that could be implemented by the government. Please explain the…

A: Answer: Introduction: Expansionary monetary policy: Expansionary monetary policy is used to increase…

Q: Discuss the similarities and differences between monetary policy and fiscal policy as a tool to…

A: The monetary policies are those policies which are enacted by the central bank of a country to…

Q: Why were monetary policy responses ineffective during the Great Depression?

A: The great depression was characterized by the fall in the aggregate demand. The fall in aggregate…

Q: D4) explain the loss function of central banks and how monetary policy can be implemented to cope…

A: A financial crisis is any of a number of scenarios in which the nominal value of some financial…

Question

One of the advantages monetary policy in relation to fiscal policy is that:

a. It is easier to control

b. It reduces the role of the state in the economy

C. It can be adjusted faster if necessary

d. It makes it more difficult to engage in speculation

Definition Definition Policy implemented by the central bank of a country (such as the Federal Reserve in the United States) to achieve certain macroeconomic objectives. Monetary policy is a supply-side macroeconomic policy that supervises the growth rate and money supply in the economy.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Answer

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Inwhat ways might monetary policy be superior to fiscal policy? In what ways might it be inferior?
Help me please, Im confused. Does the effect of Monetary Policy can be seen much quicker than the effect of Fiscal Policy? Is there a example or prrof about it?
a) Discuss monetary policy and fiscal policy by comparing and contrasting their effects in the short run and in the long run. b) Why do we say that monetary policy is neutral in the long run? If so, why is it being used and considered as useful? c) Can we say that fiscal policy is neutral as well?
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 possible
What is a key distinction between monetary policy and fiscal policy in economic management?A. Monetary policy involves government spending and taxation, while fiscal policy focuses on interestrates and money supply.B. Monetary policy is set by the central bank, while fiscal policy is determined by the government'sbudget decisions.C. Monetary policy primarily influences employment and economic growth, while fiscal policy mainlyaffects inflation.D. Monetary policy is a short-term strategy, while fiscal policy is a long-term approach to economicmanagement.
How do the monetary policy tools of the European System of Central Banks compare to the monetary policytools of the Fed? Does the ECB have a discount lendingfacility? Does the ECB pay banks an interest rate ontheir deposits?
what is a fiscal policy what is a monetary policy -give an example in todays economy. thanks for your time
What happens if monetary policy are not effective during recession like as COVID-19 in the UK.
QUESTION 2: WORD LIMIT – MAXIMUM 500 WORDS Using the AD/AS model, analsye how monetary policy may be used alleviate inflationary pressure. In your answer, comment on the UK’s monetary policy framework. Use wellannotated AD/AS diagrams and comment on monetary policies relationship with fiscal policy
Explain the type of monetary policy a government would implement in order tocurb inflation.
Compare and contrast n the Classical, Keynesian and Monetarists view of monetary policy. Include in the analysis if monetary policy is thought to be effective by all schools. Furthermore, what role does money play in the economy? What is the source of inflation?
The architects of monetary and fiscal policy seek to use the tools at their disposal to meet macroeconomic policy objectives. a. What are some challenges – specifically around the timeliness and accuracy of data – that they face in trying to decide what policies to implement? b. In addition to these, what additional timing challenges are unique to fiscal policy (but that monetary policy makers can avoid)? How do monetary policy makers avoid them? c. Given these challenges, reflect on what you think policy makers should do going forward