Q: What is the difference between monetary policy and fiscal policy ? Explain
A: Monetary policy is regulated by the central bank of country,whereas fiscal policy is regulated by…
Q: "Money is debt." Critically evaluate.
A: Money: - money is an object that measures the value of goods and services in an economy and also…
Q: In the presence of reduced consumer confidence, the government can: (Click to select) decrease…
A: Fiscal policies are the measures used by the government to affect the economy. The major fiscal…
Q: If the investment curve was vertical and the government used an expansionary monetary policy.…
A: The investment curve shows the relationship between the interest rate and investment. A vertical…
Q: What is the reason why fiscal policy should be in tune with monetary policy when the economy is in…
A: Recession is a period of time in an economy when there is low or slow growth in economy wherein the…
Q: The economy is in an expansion, risking inflation. Which of the following lists contains things…
A: Fiscal policy: - it is a tool of the government of a country in which the government adjusts its…
Q: Explain what are the lags in macroeconomic policies. Do these lags have more effect on monetary…
A: Macroeconomic policies are used to stabilize the economy in different phases of the business cycle.…
Q: what is the differences between fiscal policy and monetary policy
A: Monetary policy and fiscal policy are two distinct tools that have an impact on the economic…
Q: What is differance between Tools of monetary policy and fiscal policy?
A: Fiscal policy refers to the government policy that stabilizes the economy through bring changes in…
Q: what is fiscal policy, monetary policy and its advantages and disadvantages?
A: The fiscal policy is the way by which a government adjusts its spending levels and tax rates to…
Q: Analyze what will happen if the net taxes decreased and the central bank sells bonds at the same…
A: A decrease in net taxes means the disposable income of consumers increases ie now given a less…
Q: When the inflation rate increases, what happens to thefederal funds rate? Operationally, how does…
A: The federal fund rate is the rate of interest charged by the depository institutions in the economy…
Q: Use the given scenarios and the information you have learned about Fiscal and Monetary policy to…
A: Monetary and fiscal policy are both macroeconomic tools for managing or stimulating the economy.…
Q: Which policy is more effective—monetary policy or fiscal policy? Why?
A: The monetary and fiscal policy, both are the way or process to balance the economic activities in an…
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: Briefly discuss how the central bank plays the role of controller of credit in an economy?
A: Commercial banks tend to create during their course of operations a lot of credit. This credit could…
Q: In general, the more the government borrows, interest rates should [rise, fall, remain unchanged].…
A: The government borrows the money to fill the gap of Fiscal Deficit. A fiscal Deficit is a difference…
Q: Governments may achieve certain economic goals; say controlling inflation or boosting economic…
A: Answer: All the economic goals such as controlling inflation, boosting growth, increasing…
Q: the government of a country increases the growth rate of the money supply from 5 percent per year to…
A: The quantity theory of money states that there is a equilibrium between the money market and good…
Q: differences between Monetary and Fiscal Policy
A: Monetary Policy refers to the measures taken by the monetary authority to control the supply of…
Q: Some economists believe the ec is self-re
A: The self adjustment process illustrates the point that government intervention is not required to…
Q: What are the similarities between fiscal and monetary policies
A: Government implies both monetary as well as fiscal policy inorder to maintain the economic stability…
Q: Fiscal policy consists of tools used by the Central Bank to control the quantity of money in the…
A: Fiscal policy is the policy in which government modifies the spending levels and taxes to control…
Q: What Is The Monetary Stimulus?
A: Stimulus: It refers to utilize money related or monetary strategy to invigorate the economy.…
Q: Question ONE (a). Briefly discuss the following concepts ii. . iii. Monetary neutrality iv.…
A: (a) Macroeconomics is the division of economics that talks about the economy as a whole. In this,…
Q: Please provide two similarities and two differences between fiscal policy and monetary policy
A: Monetary and fiscal policy are important macro-economic tools of the economy. Both these policies…
Q: What is the crowding out effect? According to monetarists, what is the effectiveness of fiscal…
A: Crowding out: Expansionary fiscal policies such as increased spending by the government may cause…
Q: Explain why money printing is not desirable instrument to finance budget deficit?
A: Fiscal deficits occur when the government spends more money during a fiscal year than it receives.…
Q: 3.6 Explain why the timing of fiscal policy may be more difficult than the timing of monetary…
A: 3.6) Fiscal policy: It refers to the change in tax structure and government spending by the…
Q: I need a quickly answer. Critically evaluate and explain with help of graph (s) that monetary…
A: The monetary policy involves the quantity of the monetary policy in the economy. The money supply…
Q: How is monetary policy linked with fiscal policy? Comment.
A: The monetary and fiscal policies are independent of one other but new challenges, in turn, call them…
Q: if the government budget deficit equals $240 billion and the money supply increases by $100 billion,…
A: The budget deficit is an excess of government spending over its revenue. To meet the deficit, the…
Q: If the government increases spending by 200$ with a money multiplier of 3 and the tax rate is 20%,…
A: Increase in government spending = 200 $ Money multiplier = 3 Tax rate = 20 %
Q: Why would a central bank be concerned about persistent,long-term budget deficits?
A: Budget deficits refer to the situation of the government when the expenditure in the economy exceeds…
Q: The economy is at full employment, with fairly low levels of unemployment and inflation. What is…
A: In an economy, any change in market conditions will have an impact on the equilibrium level in the…
Q: econ
A: Fiscal policy is the use of tax policies and government spending in order to influence conditions of…
Q: In theory, fiscal policy can be as effective in stabilizing the economy as is monetary policy. What…
A: Fiscal policy is the policy that is made to achieve the stability by the government by using its…
Q: Why do prices rise when the government prints too much money
A: The quantity theory of money states that the economy is in equilibrium when the money market and…
Why does the government borrow money?
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