Determine whether the following items are examples of expansionary fiscal policy, contractionary fiscal policy, expansionary monetary policy or contractionary monetary policy as they affect the aggregate demand of an economy. 1. A Significant treasury bond buyback * a. Expansionary fiscal policy b. Contractionary fiscal policy c. Expansionary monetary policy d. Contractionary monetary policy 2. Issuance of new treasury bonds at a higher interest rate * a. Expansionary fiscal policy b. Contractionary fiscal policy c. Expansionary monetary policy d. Contractionary monetary policy
Determine whether the following items are examples of expansionary fiscal policy, contractionary fiscal policy, expansionary monetary policy or contractionary monetary policy as they affect the aggregate demand of an economy. 1. A Significant treasury bond buyback * a. Expansionary fiscal policy b. Contractionary fiscal policy c. Expansionary monetary policy d. Contractionary monetary policy 2. Issuance of new treasury bonds at a higher interest rate * a. Expansionary fiscal policy b. Contractionary fiscal policy c. Expansionary monetary policy d. Contractionary monetary policy
Chapter15: Fiscal Policy
Section: Chapter Questions
Problem 11SQP
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Question
Determine whether the following items are examples of expansionary fiscal policy, contractionary fiscal policy, expansionary
1. A Significant treasury bond buyback *
a. Expansionary fiscal policy
b. Contractionary fiscal policy
c. Expansionary monetary policy
d. Contractionary monetary policy
2. Issuance of new treasury bonds at a higher interest rate *
a. Expansionary fiscal policy
b. Contractionary fiscal policy
c. Expansionary monetary policy
d. Contractionary monetary policy
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