17. When a Central Bank buys government bonds from banks, this is a. restrictive monetary policy b. expansional monetary policy c. expansional fiscal policy d. restrictive fiscal policy
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- The U.S. government has shut down a number of times In recent history Explain how a government shutdown will affect the variables In the national Investment and savings identity Could the shutdown affect the government budget deficit?1. Increasing government spending when the economy is in a recession is an example of: A. active monetary policy B. active fiscal policy C. passive monetary policy D. passive fiscal policy 2. Because monetary and fiscal lags are long and variable: A. stronger policies must be used B. successful stabilization policy is completely impossible C. attempts to stabilize the economy are often destabilizing D. policy must be completely passivef Congress and the president decide an expansionary fiscal policy is necessary, then they should target higher interest rates by decreasing the money supply. enact policies that increase government spending and decrease taxes. Oenact policies that decrease government spending and increase taxes. O target lower interest rates by increasing the money supply. 2001-20 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Expansionary monetary policy and contractionary fiscal policy has a combined effect which is ________.a. a decrease in interest rate and decrease in tax ratesb. an increase in interest rate and increase in tax ratesc. an increase government spending and decrease in money supplyd. an increase in tax rates and decrease in interest ratesWhich organisation controls fiscal policy in Australia? Select one: a. The Reserve Bank of Australia O b. The National Cabinet O. The State Governments O d. The Federal Reserve e. The Federal Government10. In order to close an inflationary gap, the government needs to implement which of the following measures A. expansionary fiscal policy B. contractionary fiscal policy C. expansionary monetary policy D. contractionary monetary policy
- To fix a negative supply shock in an economy, ___________should be used. a. contractionary monetary policy b. demand-side fiscal policy c. supply-side fiscal policyB. Move the Economy back to Potential GDP C. Do nothing D. Decrease Inflation, Lower Interest Rates, Increase Spending 33. If an Economy is producing below Potential GDP, the correct form of action is: A. Expansionary Monetary Policy combined with Contractionary Fiscal Policy B. Contractionary Monetary Policy combined with Expansionary Fiscal Policy C. Expansionary Monetary Policy or Expansionary Contractionary Policy or some Combination of both D. Contractionary Monetary and Fiscal Policy in the Same Amounts xt Predictions: On Editor Suggestions: Showing Et P + 51°True or False and why? 6. Fiscal policies tend to be automatic as a result of legislation. 7. Taxes always act as automatic stabilizers. 8. Contractionary monetary policies result to lower investment spending and higher incomes. 9. Inflation targeting is a mandate exclusive to the Bangko Sentral ng Pilipinas. 10. Expansionary monetary policies result to an increase in real GDP.
- 44)Which of the following statements is most accurate regarding fiscal policy and monetary policy? Select one: a. Monetary policy can be changed more quickly than fiscal policy. Fiscal policy can be changed at any of the FOMC meetings and the smaller number of individuals involved makes it easier to change fiscal policy. b. Fiscal policy can be changed more quickly than monetary policy. Fiscal policy has much shorter delays due to the smaller number of legislators involved. c. Monetary policy can be changed more quickly than fiscal policy. Monetary policy can be changed at any of the FOMC meetings and the smaller number of individuals involved makes it easier to change monetary policy. d. Fiscal policy can be changed more quickly than monetary policy. Monetary policy has much longer delays due to the larger number of legislators involved.6. Assume that the economy is facing the zero lower bound.a. Explain how the Federal Reserve might engage in expansionary monetary policy and what that will do when the economy is facing the zero lower bound.b. Explain how expansionary fiscal policy might influence the economy when facing the zero lower bound.d. Macroland implements a combination of expansionary fiscal and monetary policies. What will be the effect of these policies on each of the following?i. Aggregate demand in Macrolandii. The price level in Macroland iii. Explain the effects of expansionary fiscal policies on interest rates inMacroland.iv. Explain the effects of expansionary monetary policies on interest rates in Macroland.
