An intended goal of expansionary fiscal policy and an easing of monetary policy is Select one: a. the equalization of the distribution of income. b. an increase in the price level. c. an increase in the level of aggregate output. d. an increase in interest rates.

An intended goal of expansionary fiscal policy and an easing of monetary policy is Select one: a. the equalization of the distribution of income. b. an increase in the price level. c. an increase in the level of aggregate output. d. an increase in interest rates.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter14: Macroeconomic Policy: Tradeoffs, Expectations, Credibility, And Sources Of Business Cycles

Section: Chapter Questions

Problem 6E

See similar textbooks

Related questions

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: For this economy to produce Y1 and sustain it without inflation a) the price of oil must increase.…

A: The long run market equilibrium level is one where the aggregate demand (AD), short run aggregate…

Q: If leakages are greater than injections into the economy then: a. The economy will grow b. The…

A: The equilibrium is established where the aggregate demand and aggregate supply are equal. An…

Q: b. How do fiscal and monetary policies differ in their approaches to managing the economy during…

A: A recession is an economic downturn described by a critical and sustained decrease in economic…

Q: 5. Draw a market with a non-binding price floor and intuitively explain what will happen, and why,…

A: Price floor is a type of intervention done by the government to prevent the limit the fall of prices…

Q: The appropriate monetary policy action meant to decrease rapid inflation would be to increase a.…

A: The central bank is the monetary institution. The central bank controls the money supply in the…

Q: What happens when an economy was initially in full employment, following a strongly expansionary…

A: Answer: Full employment refers to the level of employment where output is maximum when all the…

Q: The exchange rate is Select one: a. the fluctuations of the interest rate in the economy. b. the…

A: The movement of currency from one country to another country through exchange is called the exchange…

Q: What were the monetary and fiscal policy responses to the Great Recession? Discuss their…

A: During the late 2000s, the nice Recession was defined by a dramatic drop by profitable exertion.…

Q: Supply-side economics advocates that the government A. do all in its power to stimulate growth; B.…

A: The macroeconomic theory called supply-side economics holds that reducing taxes, reducing…

Q: Which statement BEST describes monetary policy? A. Monetary policy refers to the Federal Reserve's…

A: The following problem has been solved as follows:

Q: Some economists argue that policymakers can use monetary and fiscal policy to reduce the severity of…

A: Monetary policy refers to policy that affects the cost and availability of credit in an economy.…

Q: the economy has entered a recession. what are two fiscal and two monetary policy actions that could…

A: Monetary policy is a policy tool implemented by the central bank in order to control the overall…

Q: Why monetary policy and fiscal policy are important macroeconomic tools used to stimulate the…

A: Monetary policy is important to control the money supply in a economy . Inflation and interest rates…

Q: Which policy would be better or effective for stabilizing an economy, monetary or fiscal?

A: Economic policies are a set of strategies, actions, and measures implemented by a government or…

Q: Consider the economy of Canada. Its households spend 55% of increases in their income and saves 45…

A: The problem is to estimate the size of a tax cut necessary in the Canadian economy for the actual…

Q: Which of the following is incorrectly classified as an expenditure reducing policy? Select one: a.…

A: When talking about an expenditure reducing policy, it can be said that it is the policy to allow…

Q: directions: Use the given scenarios and the information you have learned about Fiscal and Monetary…

A: When an economy grows faster than its potential, actual production exceeds potential output at full…

Q: compare monetary and fiscal policy in classical and keynesian model. Be precise

A: Fiscal policy affects aggregate demand through changes in government spending and tax assessment.…

Q: how can i use fiscal and monetary policy

A: Depression is defined as a severe and prolonged recession. A recession is a situation of declining…

Q: Consider the following shocks: A. The government cuts the personal income tax B. Firms expect a…

A: Since you have posted a ques with multiple parts , I have solved the first three parts for you. AD =…

Q: Assume that the economy is operating with falling real GDP and higher than usual unemployment. What…

A: A country's actual gross domestic product (GDP), which is inflation-adjusted, is used to calculate…

Q: In 2019 the federal government decreased interest rates for banks three times. Shortly after, POTUS…

A: Lowering the interest rate is an expansionary monetary policy.

Q: Which statement is most likely consistent with the classical view? A.The Congress should set…

A: The classical economic theory developed shortly after the birth of Western capitalism. It refers to…

Q: Scenario FRQ In 2019 the federal government decreased interest rates for banks three times. Shortly…

A: A. Decline in interest rates mean less towards savings and more towards consumption spending. Hence,…

Q: When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy?…

A: The government can stabilize the economy with the help of Monetary and Fiscal Policy.Fiscal Policy:…

Q: The following graph shows a hypothetical aggregate-demand (AD) curve, short-run aggregate-supply…

A: Monetary and fiscal policy are tools that are implemented to stabilize the economy during an…

Q: Monetary and fiscal policy play important roles in economic stimulation and or stabilization in what…

A: The government can stabilize the economy with the help of Monetary and Fiscal Policy.Fiscal Policy:…

Question

An intended goal of expansionary fiscal policy and an
easing of monetary policy is
Select one:
a. the equalization of the distribution of income.
b. an increase in the price level.
c. an increase in the level of aggregate output.
d. an increase in interest rates.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Fiscal and Monetary Policies a. Write down the relationship between Budget Deficits, Debt, Government Spending and Taxes as a ratio to GDP. Explain the four independent variables that affect the ratio of Debt to GDP and the direction of its movement b. Explain the difference between policy rule and policy discretion in monetary policy. Please provide examples.
Expansionary monetary policy is described as a the interest rate at which one bank lends funds to another bank overnight. b monetary policy that increases the supply of money and the quantity of loans. c monetary policy that decreases the supply of money and the quantity of loans. d the interest rate at which the central banks loans money to commercial banks.
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 rates
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.
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
17
the economy has entered a recession. what are two fiscal and two monetary policy actions that could be used to help with the the recession give and explanation on what each one does
Which of the following is incorrectly classified as an expenditure reducing policy?Select one:a. Using Fiscal policyb. Invest money into education of future workforcec. Training to improve quality of workforced. Using Monetary policye. Revaluing the exchange rate
The U.S. monetary policy is conducted to achieve two goals of price stability and fullemployment output. In the short run, monetary policy can influence economic activity through the monetary transmission mechanism. Which of the following is false?a. Monetary expansion tends to encourage consumption by lowering the interest rate. b. Monetary expansion tends to encourage investment by lowering the interest rate. c. Monetary expansion tends to lead to appreciation of the domestic currency, which encourages the foreign imports.d. Monetary contraction leads to lower asset prices, which tends to discourage investment.e. All of the above are correct
If a central bank buys government securities from the private sector-money markets,leading to an expansion of the money supply, other things being equal, what would theeffect be on the following?(d) Aggregate Supply(e) Aggregate Demand(f) Economic activity(g) Price level of the economy can you help giving me these 4 ans.
find objective of policy & Monetary policy
A4