Q: Explain why fiscal policy actions typically work with a lag
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Q: Assume an economy where the government embarks on an expansionary fiscal policy, explain the effect…
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A: Answer: 6) Option (d) is correct All are fascal instruments
Q: 2 - D please
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Q: 5. Aspects of fiscal policy Suppose the economy had been producing at potential output but is now…
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Q: 1. a) Explain what crowding out is and why it reduces the impact of fiscal stimulus. b) True or…
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Q: Discuss the advantages and disadvantages of fiscal rules. Is fiscal policy in Zambia driven by rules…
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Q: 5. I need help answer please
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Q: 07. What factors make an expansionary "stimulus" fiscal policy effective? a) A government…
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Q: 2. The U.S. economy is in recession and has a large recessionary gap. Describe what automatic fiscal…
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Q: Which of the following would have the greatest effect on discretionary spending? Unemployment rises…
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Q: utline the supply-side view of fiscal policy. How does this view differ from the various demand-side…
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Q: D4. Discuss two reasons why discretionary fiscal policy (expansionary & contractionary) may be…
A: Contractionary fiscal policy:- When the government either slashes expenditure or hikes taxes, it is…
Q: If the government announces that it has increased the corporate tax rate from 25% to 35% and the…
A: Taxation is an instrument of the fiscal policy.
Q: Based on the forecasts in the following table, what is the country's budget balance expected to be…
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Q: Which of the following is not a category of fiscal policy? government policies regarding the…
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Q: Which of the following owns the largest proportion of the national debt? a. foreigners…
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- 4. Summarize the fiscal policy responses to the 2008 financial crisis and the 2020 pandemic. Explain howthey are similar and how they differ. Evaluate the extent to which the fiscal responses have been successful(or not) in both crises, providing evidence or economic arguments to support your views. What would youhave done differently? Explain your answers thoroughly. 5. Summarize the monetary policy responses to the 2008 financial crisis and the 2020 pandemic. Explainhow they are similar and how they differ. Evaluate the extent to which monetary policy has been successful(or not) in both crises, providing evidence or economic arguments to support your views. What would youhave done differently? Explain your answers thoroughly. Please answer all! I need to check my work!1. A serious problem with fiscal policy is thata. All countries borrow heavily from foreigners, which involves great risks b. Fiscal policymakers are independent from political pressures and hence often ignore what would be the common good of the people c. The temptation for politicians to win votes by overspending is too great and is often not controlled d. The policy, once implemented, usually has no impact on theeconomy 2. It is probably fair to say that a. The very high government debt at the present time is a result of fiscal policymakers (politicians) using their tools inappropriately b. The very high government debt at the present time is a result of the expansive policies enacted during a deep economic crisis c. The very high government debt at the present time is a result ofautomatic stabilizers which caused large deficits during the crisis d. All of these factors have contributed to the large government debtssume an economy where the government embarks on an expansionary fiscal polcy, explain the effect on equilibrium and interest rate if: a. There is a crowding out of the Private sector. b. The initial expansionary fiscal Policy was accompanied by increase in money supply
- 4. The government decides to pursue a policy of keeping the amount of tax revenue it collects to be a fixed amount. In terms of tax rates, is this policy pro-cyclical, countercyclical, or neutral? Is this a good policy for the government to adopt?3. The Keynesian view of fiscal policy Assuming a constant money supply, government expenditures can be financed by which of the following? Check all that apply. Таxes Interest rate Borrowing Money supply True or False: Keynesian economists argue that the government can fight inflation by implementing expansionary fiscal policy. True False Keynesian theory stresses the importance of countercyclical policy ▼ to offset fluctuations in aggregate demand7 Derive multiplier for a change in the government purchase and the taxes. Why is the tax multiplier smaller than the government purchase multiplier?
- ses Aside from the few years during Clinton's administration, what is the state of the national debt? Select one: O a. the debt is growing O b. the debt has been reduced considerably during the Bush and Obama administrations. O c. the debt is steadily shrinking O d. the debt is mostly staying the same Which president tried to limit07. What factors make an expansionary "stimulus" fiscal policy effective? One answer a) A government budget deficit associated with fiscal stimulus should should borrow money from those who spend less and save more, to those who spend more and save less. b) A permanent decrease in taxes is more effective in stimulating spending than a temporary one c) An increase in government purchases of goods and services should be temporary and should not permanently displace private spending d) The most expansionary way of financing the budget deficit associated with a fiscal stimulus policy is by the central bank expanding the quantity of money in circulation. e) Infrastructure investment belongs with long-term growth policy, but invariably makes a poor element in stimulus policy because such investment normally take a long time to implement. f) All the above1. What is deficit budget? What measures Government can take to bring their budget into surplus? Explain your answer.
- Economics QuestionAssume an economy where the government embarks on an expansionary fiscal policy, explain the effect on equilibrium and interest rate if: a. There is a crowding out of the Private sector. b. The initial expansionary fiscal Policy was accompanied by an increase in money supply Explain both scenarios with the aid of diagramsAssume an economy where the government embarks on an expansionary fiscal policy, explain the effect on equilibrium and interest rate if: a. There is a crowding out of the Private sector. b. The initial expansionary fiscal Policy was accompanied by an increase in money supply explain both senarios with the aid of diagrams
