An advantage of monetary policy over fiscal policy is: Select one: O a. the decision makers are independent of political pressures. Ob. the decision makers are dependent on political pressures. crc O c. the decisions are made by politicians in finance, banking, and monetary policy, not expe cro d. All of these are advantages. cross ou cro
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- What is a key distinction between monetary policy and fiscal policy in economic management?A. Monetary policy involves government spending and taxation, while fiscal policy focuses on interestrates and money supply.B. Monetary policy is set by the central bank, while fiscal policy is determined by the government'sbudget decisions.C. Monetary policy primarily influences employment and economic growth, while fiscal policy mainlyaffects inflation.D. Monetary policy is a short-term strategy, while fiscal policy is a long-term approach to economicmanagement.How do fiscal and monetary policies compare in terms of timing? a. Decision and implementation of monetary policy are comparatively slow, but its effects occur relatively quickly. b. Decision of fiscal policy is quick comparatively slow, but its implementation and effects occur rather slowly. c. Decision and implementation of fiscal policy are comparatively slow, but its effects occur relatively quickly. d. The decision, implementation and effects steps of monetary policy are always quicker than those of fiscal policy.Why might increasing taxes as a fiscal policy be a more difficult policy than the use of monetary policy to slow down an economy experiencing inflation? OA. The economy may have already slowed. B. The legislative process works quickly. OC. The legislative process experiences longer delays than monetary policy. OD. The government has more concentrated power than the Fed.
- What is the ideal balance between monetary and fiscal policy for a nation like Japan, where prices are rising yet unemployment is under control? a. Decrease taxes, increase government spending and increase money supply b. Decrease taxes, decrease government spending and decrease money supplyc. None of these choice is correctd. Increase taxes, decrease government spending and decrease money supplyChapter 18: Alternative Perspectives on Stabilization Policy Question: Some economists favour passive policy because of their: belief that shocks to modern economies are not large enough to require any policy response. O b. doubt that the correct policy will be implemented at the correct time. Oc. preference for using monetary policy rather than fiscal policy for stabilization. d. view that policy made by rules is superior to policy made by discretion. O e. view that policy responses will never be sufficient enough to eliminate the impacts of shocks.Help me please, Im confused. Does the effect of Monetary Policy can be seen much quicker than the effect of Fiscal Policy? Is there a example or prrof about it?
- 9. What is the difference between monetary policy and fiscal policy? * is known as A-The tool used by the central bank to regulate the money supply in the monetary policy B-The tool used by the government in which it uses its tax revenues and expenditure policies to affect the economy is known as fiscal policy C-Monetary poliey is administered by the government of the country whereas fiscal policy is administered by the eentral bank of the country economy O A and B A only B only A and C TOSHIBAplease answer all question, it's really matter ( not very long, just short understandable answers) 1. What are the roles for fiscal policy that might be less effective if left to monetary policy? 2. What are some clear advantages of monetary policy over fiscal policy? 3. Why did it take so long for the US government to adopt effective use of monetary policy?In the short run, expansionary monetary or fiscal policy is expected to O increase; decrease. inflation and output. increase; increase. decrease; decrease. O decrease; increase.
- 3. Monetary Policya. Assume the economy is inflationary where Y>Y* and P<P* demonstrate the state of the economy graphically and explain.b. Assume the MPC for the US is 80% and the government decides to increase regulation on business such that the cost of doing business increases by 3% or $500 billion dollars per year in the aggregate. Demonstrate and explain you answer fully.c. What Monetary Policy should the Federal Reserve Implement? What choices do they have to effect this policy? Demonstrate and explain the effects of this policy on the economy? Hint use the 5 steps from class4.This is a two-part assignment using the links below plus additional resources. Using the below links interpret the monetary and fiscal policies as either expansionary or contractionary. Define which school of thought supports each of the polices. Make sure to cite at least three sources either in MLA or APA style and have a minimum of 250 words. Here are some sources to get started https://www.whitehouse.gov/issues/budget-spending/ (Links to an external site.) https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm1. What are lags and why are they important when designing fiscal and monetary policies? (Make sure to contrast the differences in lags between monetary and fiscal policies). 2. Is the long-term scorecard of monetary and fiscal policies in the US more of a learning curve with significant successes or an example of poor government efforts at economic stabilization?