Please answer questions 4 and 6: 4. Which factor is NOT a tool of fiscal policy?(Select All that Apply)A. changing the tax ratesB. government purchases of goods and servicesC. changes in the money supplyD. changes in the interest rate to affect the moneysupply5. A contractionary fiscal policy is one that reduces aggregate demand by decreasing:A. government purchases.B. the money supply.C. interest rates.D. taxes.6. If the economy exhibited an inflationary gap, the government should follow a(n)which would shift the AD curve to theA. expansionary; rightB. contractionary; rightC. expansionary; leftD. contractionary; leftpolicy,目Page

As there are multiple separate questions answer is provided to the first question i.e. question 4.…

4. Which factor is NOT a tool of fiscal policy? (Select All that Apply) A. changing the tax rates B. government purchases of goods and services C. changes in the money supply D. changes in the interest rate to affect the money supply

4. Which factor is NOT a tool of fiscal policy? (Select All that Apply) A. changing the tax rates B. government purchases of goods and services C. changes in the money supply D. changes in the interest rate to affect the money supply

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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Please answer questions 4 and 6:

4. Which factor is NOT a tool of fiscal policy?
(Select All that Apply)
A. changing the tax rates
B. government purchases of goods and services
C. changes in the money supply
D. changes in the interest rate to affect the money
supply
5. A contractionary fiscal policy is one that reduces aggregate demand by decreasing:
A. government purchases.
B. the money supply.
C. interest rates.
D. taxes.
6. If the economy exhibited an inflationary gap, the government should follow a(n)
which would shift the AD curve to the
A. expansionary; right
B. contractionary; right
C. expansionary; left
D. contractionary; left
policy,
目
Page

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