Raising Government Spending is one of the bellow options? contractionary fiscal policy expansionary monetary policy expansionary fiscal policy contractionary monetary policy

Q: Fiscal policy is usually used during recessions because it is takes less time to implement than…

A: Recession:  The term recession refers to the period in which economic activities slow down and…

Q: The political business cycle refers to   The ups and downs in the overall business activity of…

A: Political economy is a discipline of social science that studies the interactions between people,…

Q: Q.1.3 An increase in the budget deficit is the result of: (1) Expansionary monetary policy; (2)…

A: Fiscal policy is the policy used by the government and affects the government budget in the economy.…

Q: Using the short-hand symbols G, Y, Md, r and I to demonstrate the effects of an expansionary fiscal…

A: Hey, thank you for the question. Since there are multiple questions posted, we will answer first…

Q: What is the crowding out effect? Discuss the effectiveness of fiscal policy under the crowding out…

A: Answer: Step 1: The crowding-out effect refers to the decline in private investment due to fiscal…

Q: As a result of an economic policy change, interest rates and consumption rise but investment falls.…

A: Fiscal and monetary policies are two main tools to correct the economic imbalances . Where expansion…

Q: If the government is running a fiscal deficit, it can only finance it through monetization. true or…

A: To finance the deficit, the government borrows money from the central bank and repays it by selling…

Q: In a closed economy, is the fiscal policy effective when the demand for money is interest rate…

A: A closed economy is defined as a country that is self sufficient and autarkic. A closed economy is…

Q: The following parameters describe the structure of a hypothetical economy: Autonomous…

A: IS LM models are used to determine short run equilibrium in both goods and money market . Both IS…

Q: The Great Depression and Great Recession are examples of Minsky’s Financial Instability Hypothesis…

A: Financial Instability Hypothesis: Financial instability Hypothesis is a fundamental theory of…

Q: a)Using the short-hand symbols G, Y, Md, r and I to demonstrate the effects of an expansionary…

A: Hey, thank you for the question. Since there are multiple questions posted, we will answer first…

Q: When there is a problem of a delay in terms of implementation of the fiscal policy, that would be…

A: Execution tag- The period between the conclusion of one task and the beginning of a different…

Q: I need help with these two. True or false questions.  Fiscal policy is the set of policies that…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: _________________ formulates fiscal policy and _______________ formulates monetary policy (what…

A: Both the President and Congress sets fiscal policy. Both the executive and legislative branches of…

Q: Advocates of fixed policy rules believe that   Discretionary policies can improve macro outcomes.…

A: Fixed policy rule refers to the situation when government officials beleives in some special set of…

Q: Which of the following sequence of events occurs in response to an expansionary fiscal policy?

A: Fiscal policy is essentially the policy framework adopted by the government with regards to its…

Q: ompare monetarist and Keynesian views on the proper conduct of FISCAL POLICY. For both monetarists…

A: The aggregate demand curve shows the inverse relationship between the price level and total quantity…

Q: Currently, Social Security is funded by current taxes. It is projected that in 2024, current taxes…

A: Social Security benefits are funded by a dedicated payroll tax, which workers pay into as they earn…

Q: I. Identification __________1. Shows combination of interest rates and the levels of output such…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Currently, Social Security is funded by current taxes. It is projected that in 2024, current taxes…

A: The social security would be the payments for the social security benefits of the people including…

Q: One of the main arguments against using Fiscal Policy is the crowding out effect. Suppose the…

A: Quantitative easing is a part of expansionary monetary policy.

Q: Which of the following accurately compares discretionary fiscal policy and monetary policy? a) They…

A: The intersection of aggregate supply curve and the aggregate demand curve determines the…

Q: Question 8 Fiscal policy is: a change in the money policy to solve domestic problems. the use of…

A: Answer 8.  The way the central government generates money through taxation and spends it is…

Q: What is the best combination of fiscal policies and monetary policies for a country like Japan whose…

A: The aggregate demand (AD) and aggregate supply (AS) model explains the marker equilibrium where the…

Q: Raising the discount rate and the Federal Funds rate is which one? contractionary fiscal policy…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Can you explain policy lags briefly and compare fiscal and monetarypolicies with respect to inside…

A: A policy lag implies the lag between the time when economic problem arises and the effect of the…

Q: The discount window provides:   Question 10 options:   loans to banks at low interest rates, so…

A: Discounting window is the central bank’s loan provision facility to the commercial banks in order to…

Q: What are the advantages and disadvantages of using expansionary monetary policy or expansionary…

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

Q: sume an economy where the government embarks on an expansionary fiscal polcy, explain the effect on…

A: Fiscal policies are those that change government spending and tax policies in order to regulate…

Q: Write down the relationship between Budget Deficits, Debt, Government Spending and Taxes as a ratio…

A: Since you have asked multiple questions, we will answer the first question for you. If you want any…

Q: The US federal government gets most of its revenue from: a the discount rate b the prime rate c…

A: The US Treasury bills rate

Q: Describe what will happen to the interest rate and output with the implementation of following…

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: Question 6: Compare and contrast the function of fiscal policy during short term and long term…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Q.1.1 An increase in the budget deficit is the result of: (a) Expansionary monetary policy; (b)…

A: Expansionary fiscal policy-  The expansionary fiscal policy is the increase in government…

Q: How can a budget deficit be reduced?   Group of answer choices   Decreasing government spending…

A: Ans. A. Decreasing government spending and/or increasing taxes A budget deficit is a situation when…

Q: Explain by means of aggregate demand equation and IS-LM model graphs the concept behind Fiscal…

A: The policy makers are the decision making authorities, which makes decisions regarding which…

Q: What is supply-side economics? Does it oppose the Classical, Keynesian, or Monetarist theory? How…

A: Answer:- Suррly-side  eсоnоmiсs  is  а  mасrоeсоnоmiс  theоry  whiсh  аrgues  thаt  eсоnоmiс  grоwth…

Q: Which of these are advantages of monetary policy relative to fiscal policy? Select all correct…

A: Monetary policy  Monetary policy is a mechanism used by a country's central bank to influence the…

Q: ome recheck stimulus measures in all current policy forms. These economists focus on the damaging…

A: A monetary stimulus includes lowering down the rates of "interest" to stimulate or grow the economy.…

Q: Which of the following can be categorized under fiscal policy?   a. Decrease in money supply   b.…

A: The policy in which tax policies and government spendings are used to make an impact on the economic…

Monetary Policy and Equation of Exchange

The monetary policy has been defined as the policy that is used by the Federal Reserve (the central bank of the US) or the central bank (the central bank of India is RBI) along with the use of the supply of money to accomplish certain macroeconomic policies. Monetary policy is a supply-side macroeconomic policy that supervises the growth rate and money supply in the economy.

Monetary Economics

As from the name, it is very evident that monetary economics deals with the monetary theory of economics. Therefore, we can say that monetary economics, is that part of economics that provides us with the idea or notion of analyzing money as a holding with its function, which acts as the medium of exchange, the store of value through which the buying and selling are done and also the unit of account. It also helps in formulating the framework of the monetary policy of a bank in an economy which ultimately results in the welfare of the people residing in that particular economy. The monetary policy of an economy also helps to analyze and evaluate the financial health of it.