Propose the Fiscal Policy needed to fix this economy.

Q: Fiscal policy determines the level of interest rates.True or False

A: Fiscal policy: It refers to the policy which is used by the government so that it can make…

Q: If government policy makers were worried about the inflationary potential of the economy, which of…

A: When government worried about inflation, it can use contractionary fiscal policy to reduce the…

Q: Why is crowding out an important issue in the debate over the use of fiscal policy?

A: Crowding out effect is an economic situation where interest rates are increased. This ends up  in…

Q: If government increases spending and wants to maintain a balanced budget, it should

A: The answer is as follows:-

Q: What would be the primary deficit if the fiscal deficit is $700 and Interest payment is $300 ?

A: A fiscal deficit is a setback in an administration's pay contrasted and its spending. An…

Q: can Social Security and Medicare be fiscal time bombs

A: Social security is an initiative by Federal government which provides sources of income to people…

Q: During a recession, the government decides to give an additional child tax credit to households of…

A: Recession occurs when there is a fall in the aggregate demand in the economy. The fall in the…

Q: What is the primary component(s) of GDP that Fiscal Policy is trying to effect?

A: Fiscal Policy refers to the change in government spending or taxes in order to promote economic…

Q: What are the reasons of fiscal policy not being effective in an economy according to classical…

A: The classical theory focuses on free markets and that the markets will regulate themselves when they…

Q: Subsidies are a part of ___________ expenditure

A: Any financial support which is presented as an incentive by the government to any sector or public…

Q: Which of the following is NOT a fiscal policy action? Group of answer choices decreasing government…

A: The answer is - raising the quantity of money in circulation

Q: What are the positive and negative impacts of fiscal policy on businesses within an economy?

A: Fiscal policy refers to the policies of expenditures and taxes of the government of a country. It…

Q: List what specific, deliberate actions the federal government could take to enact expansionary…

A: Expansionary fiscal policy is aimed at increasing aggregate demand when the economy is in a…

Q: During difficult economic times, why are uniform across-the-board budget cuts poor fiscal policy?

A: Difficult economic times refer to periods of economic downturn, characterized by a significant…

Q: An example of a expansionary fiscal policy is ___? need only one example fast

A: Accordingly the expansionary fiscal policy is merely known as a decrease in the tax revenue and the…

Q: What should government do with its spending and taxes during a recession? Why?

A: During a recession, taxes should be reduced and spending should be increased in order to trigger…

Q: Which of the following is an example of fiscal policy? Select an answer and submit. For keyboard…

A: Fiscal Policy refers to the measures employed by the governments to stabilize the economy of the…

Q: Fiscal policy can be classified into which two groups

A: Fiscal policy alludes to the public authority activity to impact the market by making changes in tax…

Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.