S es in Safari Which statement is CORRECT? O Monetary policy is controlled by the Federal Reserve and works by changing the demand for money and interest rates. O Fiscal policy is controlled by the president and congress and works by changing the federal income taxes paid by households and business and the level of government spending. The Federal Reserve's monetary policy decisions are made after consulting the president and congress. To stimulate output and employment using fiscal policy, the president and congress can lower interest rates and increase government spending. To reduce the inflation rate, the Federal Reserve can put controls on the price of essential goods and services. Moving to the next question prevents changes to this answer. 121 tv Question 4 of 10 > W

S es in Safari Which statement is CORRECT? O Monetary policy is controlled by the Federal Reserve and works by changing the demand for money and interest rates. O Fiscal policy is controlled by the president and congress and works by changing the federal income taxes paid by households and business and the level of government spending. The Federal Reserve's monetary policy decisions are made after consulting the president and congress. To stimulate output and employment using fiscal policy, the president and congress can lower interest rates and increase government spending. To reduce the inflation rate, the Federal Reserve can put controls on the price of essential goods and services. Moving to the next question prevents changes to this answer. 121 tv Question 4 of 10 > W

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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 limit
Which of the following is carried out in an expansionary fiscal policy? O a. Higher taxes and lower government expenditure O b. Lower taxes and higher government expenditure O c. Higher taxes and higher government expenditure O d. Lower taxes and lower government expenditure.
3. Argentina's priority before the COVID-10 crisis should have been to fight inflation and cut its primary deficit by two percentage points by 2018-2020, said the International Monetary Fund (IMF) in a report. The IMF believes that "fiscal rebalancing would need to be based on further reductions in the generous and ill- targeted energy subsidies and on a rationalization of spending in many other areas, including public wages, goods and services, and discretionary transfers to the private sector". The inflation rate fluctuates around 24%. Use the I-S (loanable funds market), the money market to propose some macroeconomic measures that could help to stimulate the economy and fight the high inflation rate.
can you explain this for me? this is a true or false statement: "increasing welfare payments by borrowing the money to fund them would increase AD" borrowing the money means we will have more deficit and interest to repay. But wouldnt it still stimulate the economy nonetheless?
22.
Supply side economics says we should talk about "the economy, because can't explain incentives to individual consumers, workers, and businesses. O False O True
A recent New York Times article stated: "Recent debates in the House considered tax cuts and tax rebates similar to those enacted two years ago by President Trump and a Republican Congress… With high unemployment rates and an economy ravaged by the coronavirus pandemic, it would be most unwise not to again seriously consider tax cuts and tax rebates to help consumers and businesses… Although this will significantly reduce tax receipts and increase the Federal deficit, the Federal Government should borrow money and continue its deficit fiscal policy to increase spending for the Affordable Health Care Act, economic stimulus, Medicare, Social Security, and other programs. A deficit is a small price to pay for economic stability.” Using the fiscal policy tools, Brieflt explain what the new york times means by this statement and wheather you agree or disagree. Include at least three concepts from Macroeconomic and underline them.
What would happen to output, employment, and the price level if the government increased spending on infrastructure, ceteris paribus? O Output would decrease, employment would decrease, and the price level would decrease O Output would decrease, employment would decrease, and the price level would increase O Output would decrease, employment would increase, and the price level would increase Output would increase, employment would increase, and the price level would decrease. O Output would increase, employment would increase, and the price level would increase Question 2(Multiple Choice Worth 5 points) (03.06 MC) Assume the price level is increasing, real GDP is decreasing, and the unemployment rate is increasing. Which event would explain this macroeconomic situation? OA positive supply shock OA negative supply shock A positive demand shock OA negative demand shock O insufficient data
Consider the following picture. c' A D B E F Suppose that the government changes government spending: it increases G and decreases G', but leaves T and T' unchanged. The interest rates in the economy are also unchanged. What happens to the budget line of the consumer? O It expands to the right: the consumer will be able to consume more in the present, and less in the future It contracts to the left: the consumer will be able to consume less in the present, and more in the future O It's unchanged O Impossible to tell!
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Suppose that the amount of taxes in the US is equal to $1800. Suppose that the government expenditures is equal to $1800. In addition, you know that the current level of debt in the US is equal to $380000 (all numbers in billions of domestic currency). Given this data, what is the new level of the US's debt? $ Hint ow Transcribed Text $ Suppose that the amount of taxes in Slovenia is equal to 1300. Suppose that the government expenditures are equal to 1700 (All numbers in billions of domestic currency) Given this data, what can you say about Slovenia's budget? What is the size of Slovenia's deficit? Hint ow Transcribed Text 4 3 Consider the following statistics for banking sector in Mexico displayed in the table below (all numbers in billions of domestic currency). Coins and Currency in Circulation Checkable Deposits Traveler's Checks Hint 1400 1 1900 Savings Accounts 8600 Money Market Mutual Funds 500 Time Deposits 600 Using the data above, calculate M2 for Mexico. Use the new…