If investment and consumption expenditures fall and cause GDP to fall, what is an appropriate monetary policy?     decrease monetary base growth and increase interest rates   decrease taxes and increase government expenditures   increase monetary base growth and decrease interest rates   increase taxes and decrease government expenditures

Q: The economic boom of the early 1940s resulted mostly from   a. increased government expenditures.…

A: Economic boom is a situation in which economic activities of the country increases and there is an…

Q: Suppose the economy is in inflation, give your suggestion how to end this problem using monetary…

A: The economy would result in the functioning of the fiscal and the monetary policy in the economy.…

Q: What is the impact if a central bank does not change its monetary policy at full employment? Output…

A: Monetary policy is a policy tool that is used by the central bank to control the money supply in an…

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 chair of the U.S. Federal Reserve Board warns of an overheating economy, what will happen to…

A: Overheating economic refers to the situation when the growth rate of GDP is lower than inflation.…

Q: When a central bank uses its powers over the banking system to engage in “against the business…

A: Monetary Policy refers to a policy that influences the economy by manipulating the banking system's…

Q: True or false: Changes in monetary policy can affect output in the long run, but not in the short…

A: Monetary policy is a set of tools used by a country's central bank to encourage long-term economic…

Q: Briefly synthesize (4-6 sentences) the 2020 monetary policies implemented by the US government as a…

A: When talking about the influence of COVID-19, ot can be said that it has a world-wide negative…

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: QUESTION 3 Tools used by the central bank to control the quantity of money is called Fiscal Policy.…

A: Policies refer to the action plans undertaken by the central bank and the government of the nation…

Q: Which of the following sequence of events follows an expansionary monetary policy? A) rt =It = ADI…

A: A). An expansionary monetary policy means increasing the money supply in the economy faster than…

Q: Discuss the limitations of monetary policy?

A: Monetary policy refers to macroeconomic initiatives taken by the government to guide the economy.…

Q: Why are Keynesians more likely to advocate expansionary monetary policy to eliminate a recessionary…

A: Recessionary gap means when the GDP of a nation is lower than the full employment level of GDP.…

Q: Differentiate between monetary flow and real flow

A: Real flow is the actual flow of goods and services. Monetary flow is the payments made for the…

Q: If the government decides to raise taxes to prevent inflation, this is an example of a) monetary…

A: Inflation can be combated by decreasing the aggregate demand.

Q: An expansionary monetary policy would be associated with ... Group of answer choices a. A rising…

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

Q: If investment and consumption expenditures fall and cause GDP to fall, what is an appropriate…

A: The fall in the investment and the consumption expenditures would result in the fall in the…

Q: Expansionary monetary policy is described as a the interest rate at which one bank lends funds to…

A: Expansionary monetary policy is described as monetary policy that increases the supply of money and…

Q: Which of the following is NOT an example of monetary policy to restrict aggregate demand? a)Raising…

A: In an economy, central bank uses different ways to influence aggregate demand according to the need…

Q: Using monetary policy to raise the real interest rate leads to an ______ in investment spending and…

A: Using monetary policy to raise the real interest rate leads to an decrease in investment spending…

Q: If a recession persists due to nominal wage and price stickiness (i.e., slow adjustment of nominal…

A: Answer- Need to find- If a recession persists due to nominal wage and price stickiness (i.e., slow…

Q: The multiplier is an indication of the capacity of money injected in the economy to    a. increase…

A: The economics as a study is based upon the basic idea of scarcity. The resources which are present…

Q: Expansionary monetary policy and contractionary fiscal policy has a combined effect which is…

A: "In macro-economics, the monetary policy is the actions taken by the central bank of an economy to…

Q: When the economy slows down heading towards a recession, then the appropriate monetary policy would…

A: During recession, the demand started to decline and unemployment started rising. Monetary policy is…

Q: Governments are responsible for maintaining full employment, price stability, and economic growth –…

A: Stimulative monetary policy of united states is the monetary policy in which policy is adjusted…

Q: What is the main differences between monetary policy and fiscal policy

A: Monetary policy refers to the tool which is used by central bank in order to increase or decrease…

Q: A tight monetary policy that involves high interest rates may lead to a number of related problems.…

A: The process of correcting the economic challenges through implementation of appropriate monetary…

Q: Fully explain why the following statement is true and/or false:   “The net-export effect supports…

A: We are going to discuss the various interlinkages of aggregate demand, Exchange rate, different…

Q: What effects does the Federal Reserve have on the economy? Select the three correct answers.:…

A: Federal Reserve uses monetary policies in order to manage the economy

Q: In the AS/AD model, an expansionary monetary policy Group of answer choices reduces aggregate demand…

A: Monetary Policy helps to stabilize the money supply in the economy to promote economic growth.

Q: Expansionary monetary policy (cet. par.) means that the Z curve in Z-Y space shifts up. True, False,…

A: Fiscal and monetary policy are the economic instruments that are used by the government to control…

Q: The Taylor Rule is an example of   a.  a monetary policy measure that always sets the money supply…

A: The Taylor rule is a formula targeting monetary policy used by central banks. According to Taylor, a…

Q: How can an expansionary monetary policy could solve the problem of a decline in economy activity

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

Q: How does the changes of interest rate(Monetary Policy) affect consumption?

A: A central bank's monetary policy is an economic strategy for controlling changes in the money…

Q: Assume the economy has entered a recession. Identify two monetary policy actions that could be used…

A: When recession is prevailing in the economy, the central bank adopts the expansionary monetary…

Q: If a recession persists due to nominal wage and price stickiness (i.e., slow adjustment of nominal…

A: Answer: Correct option: (D) expansionary monetary policy Explanation: In the case of a recession,…

Q: Cite one limitation of monetary policy and make recommendation to address it.

A: Concept The central bank's monetary policy is the central bank's macroeconomic policy. It is a…

Q: To encourage spending to offset a lower demand for goods and services, the government will implement…

A: Monetary policy refers to changes in money supply in the economy.

Q: How does an expansion of the money supply affect the aggregate-demand curve? How does your answer…

A: An expansionary monetary policy is a concept where the central bank used is both quantitative and…

Q: What is the ideal balance between monetary and fiscal policy for a nation like Japan, where prices…

A: The marker equilibrium in which the AD curve crosses the AS curve is explained by the aggregate…

Q: Which of the following does monetary policy seek to achieve? A. higher government revenues B.…

A: Monetary policy is a tool by which central bank can bring price stability by ensuring price…

Q: How can an expansionary monetary policy could solve the problem of a decline in economy activity…

A: Expansionary monetary policy is a macroeconomic tool which is used to stimulate economic-growth.…