What's the difference between the debt and a deficit? Expansionary fiscal policy involves increasing This will lead to a budget and decreasing Contractionary fiscal policy involves increasing and decreasing

Q: Describe three ways in which government spending can be financed

A: Government spending on goods and services is one of the major components of aggregate demand.…

Q: What is meant by fiscal policy? How far can it be used to ensure, a high level of employment?

A: In a market economy, decisions are taken by the market forces and the government has limited…

Q: Distinguish between automatic fiscal policy and discretionary fiscal policy. What type of fiscal…

A: Fiscal policy refers to the government policy regarding tax and government spending which stabilizes…

Q: What would be the Primary deficit if fiscal deficit is 77 and Interest payment is 66?

A: Interest payments are the expense of acquiring cash. The borrower makes these payments as well as…

Q: Which of the following will lead to expansionary fiscal policy? Select all that apply: reduction in…

A: Fiscal policy refers to the use of government spending, and taxation to influence the economy. It is…

Q: 1- Discuss two reasons why discretionary fiscal policy (expansionary & contractionary) may be…

A: Fiscal policy In terms of government tax and spending decisions, fiscal policy is used. Fiscal…

Q: Explain the role of the Presidency and the Congress in the budget proces

A: A budget process refers to the mechanism by which a budget is generated and approved by government.

Q: A government budget shows the primary deficit of 6100 billion the revenue expenditure on interest…

A:

Q: Briefly explain how an expansionary fiscal policy works.

A: In an economy, fiscal policy refers to the action of the government when it tries to influence the…

Q: what are the objectives of fiscal policy?

A: A fiscal policy is a policy of taxation and spending decisions taken by the government. The main…

Q: Which of the following is NOT a discretionary fiscal policy A. Making automatic stabilizers more…

A: Fiscal policy refers to the impact on the economy that is produced by governmental spending and…

Q: What is an expansionary gap? What fiscal policy might close that gap?

A: Answer: Introduction: Expansionary gap: when the actual output level exceeds the potential output…

Q: How could fiscal policy alleviate the problem? What specific policy changes would be needed?

A: Everything involving public funding or taxes is referred to as fiscal. Fiscal policy refers to how…

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: Find the primary deficit in a government budget if the fiscal deficit is $9200 and the interest…

A:

Q: Under what conditions is expansionary fiscal policy the most effective at increasing output? Why?

A: Expansionary fiscal policy is the policy which is to be used to push back the equilibrium normal…

Q: Calculate fiscal deficit when Borrowings is $15,000 and the interest is $600

A: # Fiscal deficit is the difference between total expenditure and total receipts or spending of the…

Q: What is expansionary fiscal policy? What is contractionary fiscal policy? Does expansionary fiscal…

A: In Keynesian macroeconomic theory, aggregate demand plays a very major role in stabilizing the…

Q: he Effects of Fiscal Deficits on an Economy.

A: Fiscal deficits are unfavourable balances that develop whenever a government spends more within a…

Q: Fiscal stance refers to: Select one: A. A government that takes a tough stance when it comes to…

A: Fiscal policy refers to government actions that result in a change in the level of economic activity…

Q: Please show a diagram showing fiscal stimulus impacting on an economy where household saving is on…

A: Fiscal stimulus is defined as the fiscal policy measures taken by the government to boost the…

Q: Distinguish between deficit and debt.

A: Deficit refers to the outflow of money that is greater than the inflow of money. For example, a…

Q: Find one article describing at least one instance of the use of Fiscal Policy during that 15 year…

A: One example of fiscal policy being used during the 15-year period from 2008 to 2023 is the…

Q: 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: Define the budget deficit

A: A budget is a financial document of the economy. This includes the expected revenue of the…

Q: What is fiscal policy? What effect does it have on the economy? What effect does the economy have on…

A: Disclaimer:“Since you have asked multiple question, we will solve the first question for you. If you…

Q: Explain each of the tools that exist in expansionary fiscal policy and contractionary fiscal policy.

A: Fiscal policy is the use of government spending and taxation to adjust the economy. It is a method…

Q: Explain how expansionary fiscal policy works in an economy

A: The fiscal policy is the use of government revenue (taxes or tax cut) and the government…

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: Which of the following is NOT a component of federal fiscal policy?   A. Federal tax revenues…

A: The fiscal policy plays an important role in stabilizing an economy. By synchronized with monetary…

Q: Who is in charge of fiscal policies, and how do their different multipliers work?

A: The fiscal policy is the use of the government budget to affect an economy. when the government…

Q: True or False and explain: Fiscal Policy is effective at reducing the duration of an economic…

A: Fiscal policy refers to the method of government spending and tax policies to control the economic…

Q: List and briefly explain the time lags involved in discretionary fiscal policy.

A: Discretionary fiscal policy implies the public authority makes changes to taxation rates as well as…

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: What is classes as an expansionary fiscal policy?

A: Fiscal policy is the government-imposed policy used to change economic conditions like demand,…

Q: What is the relationship between the government deficit and debt? Why is it essential that…

A: The term government deficit refers to the percentage of a fiscal year's expenditures that exceed…

Q: What is the difference between expansionary and contractionary fiscal policy and what effects does…

A: Fiscal Policy: Fiscal policy is a part of an economic policy that is monitor by the government of…

Q: Explain the 3 types of lag we should be concerned about when implementing fiscal policy?

A: When a policy is implemented there are certain lags due to the difference in the period when the…

Q: What is the difference between a budget deficit, a balanced budget, and a budget surplus?

A: The government budget refers to the financial statement that is prepared by the government that…

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.