Which of the following policies did the Fed follow after 2014? To unwind expansionary policy measures and try to return to a normal stance of policy. To get the economy out of a recession. To stimulate the U.S. financial and banking systems. O To lower interest rate in an attempt to stimulate economic growth. None of these.
Which of the following policies did the Fed follow after 2014? To unwind expansionary policy measures and try to return to a normal stance of policy. To get the economy out of a recession. To stimulate the U.S. financial and banking systems. O To lower interest rate in an attempt to stimulate economic growth. None of these.
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 5P
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Which of the following policies did the Fed follow after 2014?
O To unwind expansionary policy measures and try to return to a normal stance of policy.
O To get the economy out of a recession.
O To stimulate the U.S. financial and banking systems.
O To lower interest rate in an attempt to stimulate economic growth.
O None of these.
5
The recent use of discretionary fiscal policy was facilitated by
O the elimination of the balanced budget amendment.
O the ineffectiveness of monetary policy.
O changing beliefs among economists about the lags of monetary policy.
O the use of automatic policy rules.
O the prediction of high rates of unemployment that could otherwise occur in the future if
government did nothing.
6
For real and potential GDP to be equal, the budget surplus has to be zero.
O True
O False](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6cdd30f-ca94-4e7e-aaee-158576d6036d%2Fdb807d1f-fee0-4d31-838b-1a6a96440534%2Frosf44b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4
Which of the following policies did the Fed follow after 2014?
O To unwind expansionary policy measures and try to return to a normal stance of policy.
O To get the economy out of a recession.
O To stimulate the U.S. financial and banking systems.
O To lower interest rate in an attempt to stimulate economic growth.
O None of these.
5
The recent use of discretionary fiscal policy was facilitated by
O the elimination of the balanced budget amendment.
O the ineffectiveness of monetary policy.
O changing beliefs among economists about the lags of monetary policy.
O the use of automatic policy rules.
O the prediction of high rates of unemployment that could otherwise occur in the future if
government did nothing.
6
For real and potential GDP to be equal, the budget surplus has to be zero.
O True
O False
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