When the Federal Reserve can't cut short-term nominal rates any further and its capacity to cut long-term rates is limited, might be the only effective tool left to stabilize the economy. discretionary fiscal policy mandatory spending an automatic stabilizer monetary policy
When the Federal Reserve can't cut short-term nominal rates any further and its capacity to cut long-term rates is limited, might be the only effective tool left to stabilize the economy. discretionary fiscal policy mandatory spending an automatic stabilizer monetary policy
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter12: Fiscal Policy, Incentives, And Secondary Effects
Section: Chapter Questions
Problem 2CQ
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![When the Federal Reserve can't cut short-term nominal rates any further and its capacity to cut long-term
rates is limited, might be the only effective tool left to stabilize the economy.
discretionary fiscal policy
mandatory spending
an automatic stabilizer
monetary policy](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82041d7a-0498-4a55-8abf-b7807e442bf9%2F6b854030-7c9b-4900-9f05-e23114c9af06%2Fbh7nrum_processed.jpeg&w=3840&q=75)
Transcribed Image Text:When the Federal Reserve can't cut short-term nominal rates any further and its capacity to cut long-term
rates is limited, might be the only effective tool left to stabilize the economy.
discretionary fiscal policy
mandatory spending
an automatic stabilizer
monetary policy
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