Fiscal and Monetary Policies are different in that a)Only fiscal policy tools may include taxation and stimulus checks for a country residents b)Only monetary policy tools may include targeting the Fed Funds rate c)Only Congress is authorized to approve spending associated with fiscal policy d)All of the above
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Fiscal and
a)Only fiscal policy tools may include
b)Only monetary policy tools may include targeting the Fed Funds rate
c)Only Congress is authorized to approve spending associated with fiscal policy
d)All of the above
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- Which of the following statements about Fiscal Policy is INCORRECT (a) In order to combat inflation, the South African Reserve Bank must apply a contractionary fiscal policy; (b) A contractionary fiscal policy can result in higher levels of unemployment; (c) Expansionary fiscal policy will increase the budget deficit; (d) The application of fiscal policy will have no effect on aggregate supply in the AD‐AS model. If the inflation rate is 6% and Susan receives a 6% increase in income, then, over the year, Susan’s: (a) Real and nominal income both remain unchanged; (b) Real and nominal income both rise; (c) Real income rises but nominal income remains unchanged; (d) Nominal income rises but real income remains unchanged. Given the import function, Z = 300 + 2/3Y, which of the following statements is correct? The marginal propensity to save is 1/3; The induced component is 300; 2/3 is the proportion of any income spent on imports; None of…11) If the investment demand curve is almost horizontal, A) both monetary and fiscal policy are ineffective. B) both monetary and fiscal policy are very effective. C) monetary policy is ineffective, but fiscal policy can be effective. D) monetary policy is effective.A country can use a combination of monetary and fiscal policies to stabilize or control their economy. Choose the most correct statement. O Only monetary policy can affect interest rates O Only fiscal policy can affect unemployment levels O Only monetary policy can affect the level of real GDP O The federal government is more active in monetary policy than fiscal policy 36
- What is ? 1-)Potential GDP 2-)Monetary Policy 3-)Fiscal PolicyThis is a true statement about monetary and fiscal policy: The Medicare program is fiscal policy and the fed funds rate is monetary policy. Both are run by the Federal Reserve. Unemployment insurance is fiscal policy and defense spending is monetary policy. Monetary policy targets income inequality while fiscal policy targets inflation. This is an example of the government sponsoring “uneconomic” economic activity: The National Park Service Corporate income taxes Banking regulation Making trade agreements with other countriesa) 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?
- Q) Which statement below is true of ONLY fiscal policy? Uses government expenditures to create demand Increases the availability of money Used to alter AD A policy typically set by a banking authority Explain it early and correctly.choose correct option but not copy paste anythingIf the government tries to reduce inflation when the production level in the country is higher than potential Gross Domestic Product, then one of the following answers which depicts a fiscal policy measure will be able to achieve that goal. Which one? Group of answer choices decrease in government spending decrease corporate tax rates decrease the interest rate increase transfer paymentsYou are advising the Bank of Canada and the Federal Government. The economy is in a state of contraction. a) Determine the monetary policy actions that you would recommend and explain how these actions will help to turn the economy around. b) Determine the fiscal policy measures that you would recommend and explain how these actions will help to turn the economy around.
- Which of the following statements about Fiscal Policy is INCORRECT? choose the correct answer(a) In order to combat inflation, the South African Reserve Bank must apply acontractionary fiscal policy;(b) A contractionary fiscal policy can result in higher levels of unemployment; (c) Expansionary fiscal policy will increase the budget deficit; (d) The application of fiscal policy will have no effect on aggregate supply in theAD‐AS modelWhich of the following statements about Fiscal Policy is INCORRECT?(a) In order to combat inflation, the South African Reserve Bank must apply acontractionary fiscal policy;(b) A contractionary fiscal policy can result in higher levels of unemployment; (c) Expansionary fiscal policy will increase the budget deficit; (d) The application of fiscal policy will have no effect on aggregate supply in the AD‐AS model.Long run monetary neutrality implies that fiscal policy can only change output, not prices, in the long run monetary policy can change only nominal, not real, variables in the long run monetary policy can only change output, not prices, in the long run fiscal policy can change only real, not nominal, variables in the long run