Mainstream economists supportA) adoption of a monetary rule for increases in the money supply.B) the use of fiscal policy for achieving major economic goals.OC) the requirement that the government annually balance its budget.OD) elimination of efficiency wages and insider-outsider relationships.

The majority of mainstream economists support the application of fiscal policy as a tool to…

Answered: Mainstream economists support A)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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True or False: Fiscal policy refers to government actions related to taxation and government spending to influence the economy.
Which of the following statements are TRUE? (a) In a situation of a sovereign debt crisis Keynesian macroeconomic policy is unavailable because the government is practically unable to borrow. (b) Balancing the national government budget each year is sound macroeconomic policy (c) It is possible and preferable to balance the national government budget over the business cycle. (d) The national debt always implies mortgaging our children's future and thus government should seek to retire as much of this debt as possible. (e) The part of the national debt that is owed to other parts of the national government should not be counted as a problem since it involves the government owing money to itself.
The government of Ghana has embarked on a fiscal policy route termed "Ghana beyound Aid", which route calls for tax reform if indeed ,Ghana is able to grow and develop without depending extensively on aid. Required a) Realizing that Ghana has undergone three earlier phases of tax reforms, discuss the challenges associated with securing a successful tax reforms. b) Suggest and discuss possible solutions on the way forward in resolving the challenges associated with tax reforms identified in (a) above.
A government is facing a significant budget deficit due to high levels of public spending and declining tax revenues. To address this, several measures are being considered, including cutting public expenditures, increasing taxes, and implementing more efficient tax collection methods. The impact of a budget deficit on an economy can include increased national debt and potential inflationary pressures. In this situation, the most effective approach to address the budget deficit would be:A) Borrowing more funds internationallyB) Cutting essential public servicesC) Increasing taxes and improving tax collectionD) Privatizing all public services Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.
Suppose the government decides to decrease taxes in an effort toincrease consumer spending and investment in the economy.(a) Will this plan succeed in accomplishing both goals?(b) In equilibrium, what happens to interest rates as a result of this action?(c) Would you characterize this as a case of fiscal crowding out? Explain.
Please match each description with the appropriate approach to federal finance. Policymakers should reduce spending and increase taxes when the economy is growingin order to prevent "overheating". This approach was considered conventional wisdom until the advent of theGreat Depression. Policymakers should focus on keeping unemployment low and providing the peoplewith the public goods and services they want. If insisted upon, this approach would only worsen the economy during a recession. This approach ignores the impact of the budget on the business cycle.
Please match each description with the appropriate approach to federal finance. Policymakers should reduce spending and increase taxes when the economy is growingin order to prevent "overheating".This approach was considered conventional wisdom until the advent of theGreat Depression.Policymakers should focus on keeping unemployment low and providing the peoplewith the public goods and services they want.If insisted upon, this approach would only worsen the economy during a recession.This approach ignores the impact of the budget on the business cycle. Answer bank in image
Fiscal stance refers to
Addressing recession using Fiscal and Monetary Policy tools. Scenario - The US economy is currently experiencing recession. You have Fiscal and Monetary policy tools available to address this problem: A) To attack the problem of recession, you must select at least one Monetary Policy tool and one Fiscal Policy tool. Write down the name of your Fiscal Policy tool and your Monetary Policy tool. Think the options through and write down your choices. B) Please explain why you selected the tools that you selected and why you did not select the other choices? Do this for both monetary and fiscal policy tools! Specifically, explain what is so good about the tool you selected and what is not so good about the tools you did not select? Do this for both the Monetary Policy tool and the Fiscal Policy tool. The key here is to use some decision criteria in making your choice. C) Thoroughly and completely explain how your solution (both monetary and fiscal policy tools) would work to…
A government is issuing treasury bonds to finance its budget deficit. In Financial Economics, this action represents:A) A method to decrease the national debtB) A way to finance government spending without creating debtC) A means of raising public funds by incurring government debtD) A strategy to redistribute wealth without incurring debt
10) Fiscal policy is defined as changes in federal ________ and ________ to achieve macroeconomic objectives such as price stability, high rates of economic growth, and high employment. A) taxes; interest rates B) taxes; expenditures C) interest rates; money supply D) taxes; money supply
Which argument most clearly supports the authors' claims in Source C? A "While the military is important, we have important social programs that must be funded as well." B "Our nation will gain nothing but additional deficit if spending on defense is increased." C "We need a large, stable military to be able to better protect our citizens." D "There are both benefits and drawbacks to our current level of defense spending."

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