4. Why is it important to have a separation between Central Banks and the government? Is it overly cynical to imagine that politicians would use monetary policy to get elected or reelected? (Regrettably it is because politicians cannot be trusted to do the right thing with monetary policy and that they will use policy like low interest rate to make themselves popular and win elections.)

4. Why is it important to have a separation between Central Banks and the government? Is it overly cynical to imagine that politicians would use monetary policy to get elected or reelected? (Regrettably it is because politicians cannot be trusted to do the right thing with monetary policy and that they will use policy like low interest rate to make themselves popular and win elections.)

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter13: Money And The Banking System

Section: Chapter Questions

Problem 17CQ

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9. What is the difference between monetary policy and fiscal policy? * is known as A-The tool used by the central bank to regulate the money supply in the monetary policy B-The tool used by the government in which it uses its tax revenues and expenditure policies to affect the economy is known as fiscal policy C-Monetary poliey is administered by the government of the country whereas fiscal policy is administered by the eentral bank of the country economy O A and B A only B only A and C TOSHIBA
What is a key distinction between monetary policy and fiscal policy in economic management?A. Monetary policy involves government spending and taxation, while fiscal policy focuses on interestrates and money supply.B. Monetary policy is set by the central bank, while fiscal policy is determined by the government'sbudget decisions.C. Monetary policy primarily influences employment and economic growth, while fiscal policy mainlyaffects inflation.D. Monetary policy is a short-term strategy, while fiscal policy is a long-term approach to economicmanagement.
In an economy where the central bank implements negative interest rates as a monetary policy tool, what is the most likely short-term impact on consumer savings behavior and bank profitability? A. An increase in consumer savings as people seek to safeguard their money and a rise in bank profitability due to increased lending. B. A decrease in consumer savings as the incentive to save diminishes and a decrease in bank profitability due to lower interest margins. C. No significant change in consumer savings behavior but an improvement in bank profitability due to lower borrowing costs. D. A shift in consumer investment towards riskier assets and challenges in bank profitability due to compressed interest margins. Please don't use chatgpt it is giving wrong answer and please provide valuable answer
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3. The channels through which monetary policy affects economic activity are called? A. Transmission mechanisms of monetary policy. B. Flow mechanisms of monetary policy. C. Distribution mechanisms of monetary policy. D. Allocation mechanisms of monetary policy.
How do fiscal and monetary policies compare in terms of timing? a. Decision and implementation of monetary policy are comparatively slow, but its effects occur relatively quickly. b. Decision of fiscal policy is quick comparatively slow, but its implementation and effects occur rather slowly. c. Decision and implementation of fiscal policy are comparatively slow, but its effects occur relatively quickly. d. The decision, implementation and effects steps of monetary policy are always quicker than those of fiscal policy.
2.Which of the following is an example of monetary policy? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a A change in taxes b A change in the money supply c A change in the interest rate d A change in the price level
3. Monetary Policya. Assume the economy is inflationary where Y>Y* and P<P* demonstrate the state of the economy graphically and explain.b. Assume the MPC for the US is 80% and the government decides to increase regulation on business such that the cost of doing business increases by 3% or $500 billion dollars per year in the aggregate. Demonstrate and explain you answer fully.c. What Monetary Policy should the Federal Reserve Implement? What choices do they have to effect this policy? Demonstrate and explain the effects of this policy on the economy? Hint use the 5 steps from class
What are the two goals of monetary policy? Oa. Maximum employment and low and stable inflation Ob. Maximum employment and high and stable inflation Oc. Minimum employment and stable inflation Od. Controlled government spending and low taxes
Which of the following would be classed as an expansionary monetary policy? Ο Α. A decrease in the quantity of money. ОВ. A decrease in interest rates. C. An increase in government taxation. O D. An increase in government expenditure. O E. An increase in VAT.
What is the ideal balance between monetary and fiscal policy for a nation like Japan, where prices are rising yet unemployment is under control? a. Decrease taxes, increase government spending and increase money supply b. Decrease taxes, decrease government spending and decrease money supplyc. None of these choice is correctd. Increase taxes, decrease government spending and decrease money supply
I’m very confused on all three please help!:)