Assuming a constant money supply, government expenditures can be financed by which of the following? Check all that apply. Borrowing   Money supply   Interest rate   Taxes

Q: When there is a problem of a delay in terms of implementation of the fiscal policy, that would be…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: The 'Crowding out' effect may occur as a result of: An increase in interest rate government…

A: Crowding out effect is caused by the rise in government expenditure and rise in the interest.

Q: If the government is running a fiscal deficit, it can only finance it through monetization. true or…

A: To finance the deficit, the government borrows money from the central bank and repays it by selling…

Q: In a closed economy, is the fiscal policy effective when the demand for money is interest rate…

A: A closed economy is defined as a country that is self sufficient and autarkic. A closed economy is…

Q: Which of the following would be an expansionary fiscl policy? Placing a limit on government…

A: Fiscal policy refers to the use of government expenditure and tax policies to manipulate economic…

Q: There is an increase in government expenditures financed by taxes and its overall short-run effect…

A: Government expenditure- It refers to the consumption investment and transfer payments that are made…

Q: Raising Government Spending is one of the bellow options? contractionary fiscal policy expansionary…

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

Q: As discussed in the class, discretionary policies are the actions the administration takes in order…

A: The macroeconomic policies that are formulated in the wake of the changes in the economy, by the…

Q: Initially, there is no output gap and inflation expectations are 2%. Then, expansionary fiscal…

A: GIVEN   Initially, there is no output gap and inflation expectations are 2%. Then, expansionary…

Q: how discretionary fiscal policy fights recession and inflation

A: The fiscal policy of the government used as per the need of the government is discretionary fiscal…

Q: I need help with these two. True or false questions.  Fiscal policy is the set of policies that…

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

Q: By decreasing government spending and aggregate demand, the policy ________ the price level and…

A: When other things remain the constant, decreasing aggregate demand leads to reduce the price level.…

Q: Under which condition can the government continue to accumulate debt? if it issues more bonds O ifit…

A: The debt of the government estimates how much the central government owes to its banks. The…

Q: When the government borrows funds in financial markets to pay for budget deficits and interest rates…

A: Fiscal policy is use of government revenue and spending to influence the economic activity. The…

Q: 55)If the real GDP and Price level both decreased, the following must have occurred: Select one: a.…

A: In contractionary fiscal policy, the government cut down the expenditure or increases the tax. A…

Q: Entitlement spending is Group of answer choices is another word for Discretionary Spending required…

A: Entitlement services like medicaid and medicare, as well as necessary interest payments on the…

Q: An expansionary fiscal policy: (Select All that Apply) Helpful Hint: There are 4 correct answers. O…

A: Fiscal policy is sometimes compared with monetary policy, which is determined by central bankers…

Q: Which of the following is/are examples of expansionar fiscal policy A) An increase in taxes B) An…

A: The fiscal policy is mainly concerned with the tax rates and the government spending, while monetary…

Q: Crowding out occurs when expansionary fiscal policy causes unemployment to rise inflation to rise…

A: Fiscal policy refers to changes in government spending and taxes.

Q: Supply-side policies are government policies  a)designed to influence the size of the general…

A: Supply Side Theory is a concept of growing the supply of goods and services with ambition to…

Q: Assign the correct label to the corresponding events/ policy actions that occurred during the…

A: The use of a collection of revenue and expenditure being incurred by the government in order to…

Q: Can you explain policy lags briefly and compare fiscal and monetarypolicies with respect to inside…

A: A policy lag implies the lag between the time when economic problem arises and the effect of the…

Q: sume an economy where the government embarks on an expansionary fiscal polcy, explain the effect on…

A: Fiscal policies are those that change government spending and tax policies in order to regulate…

Q: Assuming a constant money supply, government expenditures can be financed by which of the following?…

A: The money supply helps the economy to grow by increasing the purchasing power on one hand while it…

Q: What are the desirable and undesirable effects of using a lump-sum tax to finance government…

A: A lump-sum tax is an exceptional method of tax collection, in view of a fixed sum, as opposed to on…

Q: Assume an economy where the government embarks on an expansionary fiscal policy, explain the effect…

A: Fiscal and Monetary policies are used to tackle the macroeconomics conditions like aggregate demand,…

Q: Which of the following economic schools of thought promote the use of fiscal policies to stimulate…

A: Classicals believed that no government intervention is necessary and market adjusts itself.…

Q: One criticism of the fiscal policy ineffectiveness is because: A.the velocity of money is…

A: Fiscal policy: Through the use of government expenditure and tax measures to control economic…

Q: If AD=$1,500, AS=$2,500, Consumer borrowing =$500, find the level of the budget deficit so that…

A:

Q: In each of the following cases, either a recessionary or an inflationary gap exists. Assume that the…

A: Real GDP equals $100 billion, potential output equals $160 billion, and the marginal propensity to…

Q: Channels through which the federal budget is impacted in an economic recession in general. 2. The…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Which statement below is true of ONLY fiscal policy? Uses government expenditures to create demand…

A: The fiscal policy is the policy of the central government regarding the taxation and the government…

Q: Which statement below is true of ONLY fiscal policy? Uses government expenditures to create demand…

A: The government uses two types of macroeconomics policy which are fiscal and monetary policy. The…

Q: The three common limitations of discretionary fiscal policy are information lag, decision lag, and…

A: Discretionary fiscal policy is thought to be a very useful mechanism for the administration to…

Q: Crowding out occurs when   Question 25 options:   increased money supply causes private…

A: Crowding out is a situation that arises when the government applied pure expansionary fiscal policy.…

Q: Which pairs of operations BEST  fit with fiscal policy?   A.) Discount rate and Government…

A: Fiscal policy refers to the actions adopted by the government, involving changes in taxation and/or…

Q: Counter-cyclical fiscal policy and monetary policy is meant to     increase long-run trend GDP…

A: Countercyclical fiscal and monetary policy is the one which tries to change the direction of the…

Q: Which of the following is NOT an undesirable side-effect of discretionary fiscal policy?      A)…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Part of the spending on the Caldecott Tunnel project in northern California came from the American…

A: In an economy, fiscal policy is when government make changes in aggregate demand and other…