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- QUESTION 7 07. What factors make an expansionary "stimulus" fiscal policy effective? 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 above.QUESTION 6 Which of the following policies would be advocated by someone who wants the government to follow an active stabilization policy when the economy is experiencing severe unemployment? O Decrease the Money Supply, O Increase Government Expenditures. O Increase Taxes. O Increase Interest Rates.34. Which one would have the greatest effect
- Dear Expert, the question that is provided as an image is one question. If there the questions necessitate you to interact with the graph, kindly make your work clear and apparent as to how I should accordingly interact with it. I have provided all options you would expect to see in the form of an annotation. Several tutors have been answering these questions wrongly so kindly consider all aspects of the question. Thank you....... can be stopped with .... policy changes that remove the need for ..... a) seigniorage / monetary / borrowing in the open market b) hyperinflations / fiscal / printing large quantities of money c) printing large quantities of money / monetary / taxes d) hyperinflations / fiscal / seigniorage e) open market operations / new tax / selling goldQuestion 10 The diagram below shows a country's aggregate demand and supply schedules, with equilibrium at point Y. ABCD Price Level Y AD LRAS The central bank has set interest rates at 0.1% for an extended period of time, and the economy remains in equilibrium at point Y. In such circumstances, what is the most likely policy intervention that a government might use? Expansionary supply side policy Expansionary monetary policy Contractionary monetary policy Expansionary fiscal policy YF Real National Output
- 7 - If the government announces that it has increased the corporate tax rate from 25% to 35% and the income tax rate from 20% to 30%, what kind of policy will it follow?A) contractionary fiscal policyB) Supply-side policyC) contractionary monetary policyD) Expansionary monetary policyE) Expansionary fiscal policyWhich of the following owns the largest proportion of the national debt? a. foreigners b. federal, state, and local governments and the Federal Reserve c. private individuals, banks, and corporations d. foreign governmentsAnswer the question on the basis of the following aggregate demand and supply schedules for a hypothetical economy: Amount of Real Output Demanded Price Level (Index Value) Amount of Real Output Supplied $200 300 $500 $300 250 $450 $400 200 $400 $500 150 $300 $600 100 $200 Refer to the data. If the amount of real output demanded at each price level falls by $200, the equilibrium price level and equilibrium level of real domestic output will fall to: 250 and $200, respectively. O 150 and $200, respectively. 200 and $300, respectively. O 150 and $300, respectively.
- Monetary policy is subject to longer ________ lags than fiscal policy. A. Decision and information/recognition B. Implementation/effectiveness C. Decision D. Information/recognition18. "Liquidity trap" was a problem of a) monetary policy of Japan and Sweden. b) fiscal policy in Japan. c) fiscal and monetary policy of Japan. d) fiscal and monetary policy of both Japan and Sweden. e) monetary policy of Japan, fiscal policy of Sweden.Please answer number #11