overnment increases government spending and Central Bank conducts expansionary monetary policy, what is the impact on interest rate and output?
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In case government increases government spending and Central Bank conducts expansionary
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- Why would government usually default first to monetary policy for stabilization before using fiscal policy?How can a federal budget deficit increase market equilibrium interest rates and reduce private investment and future economic growth?What is the role of public finance in the economic development of a country?
- Which of the following is a tool that is used by the central bank to control the quantity of money? *a. gdpb. excess reservec. open market operationsd. government expenditure multiplierFINANCE > CAPITAL MARKETS What is fiat standard or fiat money? Under the fiat standard or fiat money, which of the money is used by the Central Bank to stabilize the circulation of money in a country?What are two monetary policies that could be implemented by the central bank which would have the same impact as unemployment benefits? Which policy above including unemployment benefits would be most effective in boosting the economy due to a decrease in economic activity
- Which of the following is not one of the pillars of Macroeconomic policies of the Government? a. Foreign Policies b. Fiscal policy c. Monetary policy d. Exchange rate policy.How do financial institutions benefit the overall economy?You expect the Central bank to conduct expansionary monetary policy. What will be the impact on the following industries, would you recommend investing in them? : a) Gold mining b) Housing construction
- Expansionary monetary policy is aimed at ________ the federal funds rate and ________ the aggregate demand curve. lowering; increasing lowering; decreasing raising; increasing raising; decreasingThrough utilizing fiscal policy, i.e. varying ________ and/or ___________, governments achieve goals for output and employment growth as well as price stability.a. interest rates, financial liberalizationb. inflation, tax elasticityc. tax rates, government spendingd. interest rates, tax ratesWhen any central bank wanted to increase the money supply and loosen credit conditions, what would it do in the private market for government bonds? Explain how this is supposed to affect the economy.
