* 9. What is the difference between monetary policy and fiscal policy? A-The tool used by the central bank to regulate the money supply in the economy is known as 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 central bank of the country A and B A only B only A and C

* 9. What is the difference between monetary policy and fiscal policy? A-The tool used by the central bank to regulate the money supply in the economy is known as 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 central bank of the country A and B A only B only A and C

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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According to new classical economists, A a change in the money supply will affect real GDP only if people anticipate the policy change. B C D fiscal policy has more chance of success than monetary policy. using monetary policy will change real GDP only if the policy takes people by surprise. monetary policy can never change real GDP.
26. A contractionary monetary policy combined with an expansionary fiscal policy will (A) decrease both income and consumption (B) increase both income and consumption (C) have uncertain effects on the interest rate and investment D) increase the interest rate and decrease investment (E) increase both the interest rate and investment
Start with a brief introduction that explains use of Government policy to control the economy. When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy? Look at both. When is it inappropriate to use monetary and fiscal policy to stimulate or stabilize the economy? Look at both. What specific fiscal policy tools would you use to stimulate aggregate demand and how? What specific monetary policy tools would you use to stimulate aggregate demand and how? What is your conclusion, should policymakers use the monetary and or fiscal policy, or a combination of both, to stimulate aggregate demand? Explain your reasoning.
The task I am struggling with. Thank you very much for your help and have a nice day.
1. Explain by using a curve the effect of a decrease in the minimum reserve requirement on the balance of the money market 2. Explain by using a curve the effect of an increase in people's real wages on the labor market. 3. Explain with examples of the application of what is meant by the expansionary fiscal policy used by the government to control the country's economy
Anticipating a recession forthcoming, the central bank would conduct a(n) Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. contractionary fiscal policy a b expanssionary fiscal policy expanssionary monetary policy contractionary monetary policy
9 Suppose the Republic of Newbee fixes the value of its currency, the Nam, to the dollar. In the U.S., the inflation rate is higher than the target inflation rate set by the Fed. The Fed then decides to reduce the money supply in the U.S. How will Newbee be affected by this action by the Fed. Use the DD/AA model to explain and graph your answer. Based on your answers can the government of Newbee use fiscal policy to stabilize Newbee’s real GDP? Explain and graph using the DD/AA
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.
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16. Which of the following is true? a. The Great Depression was caused in part by “the liquidity trap.” b. The Great Depression illustrated why the “Paradox of Thrift” is important for understanding the macroeconomy. c. The Great Depression proved that savings do not equal investment because of pessimistic animal spirits. d. The price system in the capital market (the real interest rate) was sabotaged by a structurally unsound central banking system. e. The Great Depression was caused in part by runaway greed among the business owners of the time.
QUESTION 5 Which of the following statements is correct? A. monetary policy was contractionary during the Great Recession and contractionary during the COVID Recession B. monetary policy was expansionary during the Great Recession and expansionary during the COVID Recession C. monetary policy was contractionary during the Great Recession and expansionary during the COVID Recession D. monetary policy was expansionary during the Great Recession and contractionary during the COVID Recession
14. Since the 1960s, macroeconomists have become more aware Group of answer choices -that increases in government expenditures are more effective than tax reductions as a source of economic stimulus. -that persistent inflation will reduce the unemployment rate. -of both the potential and the limitations of fiscal and monetary policy as stabilization tools. -of the fact that fiscal policy is more potent than monetary policy. Which is correct?