A large state's senator recently made a speech condemning the continuous deficits in the federal budget. She now proposes an increase in tax rates to raise more revenue for the government and thus gradually reduce the size of the national debt over a period of several years. This proposal is a common type of monetary policy. True or False

Q: Fiscal policy is usually used during recessions because it is takes less time to implement than…

A: Recession:  The term recession refers to the period in which economic activities slow down and…

Q: In the classical view, raising money supply will only cause inflation because Group of answer…

A: The classical view, in economics, refers to a theoretical perspective based on the principles…

Q: One of the three main tools of the Federal Reserve is fiscal policy.  True  False

A: Central Bank: The central bank is the apex bank of the country that supplies the money or maintains…

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: Monetary policies can work only if private enterprises respond to them in certain way; if they…

A: Monetary policy is the practices and interactions of a central bank which regulates the availability…

Q: In 2021 President Biden proposed raising long term capital gains taxes for wealthy individuals.…

A: please find the answer below.

Q: As a "lender of last resort" the Fed  :protects the deposits of $100,000 or less in all commercial…

A: A lender of last resort is an institution, that offers loans to commercial banks or other depository…

Q: Modern Monetary Theory holds that: a nation that can print its own money shouldn't be overly…

A: INTRODUCTION: MODERN MONETARY THEORY: Modern Monetary Theory (MMT) is a heterodox macroeconomic…

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

A: please find the answer below.

Q: Compare and contrast both fiscal policy and monetary Policy

A: Answer: Comparison: Fiscal policy Monetary policy Fiscal policy is undertaken by the government…

Q: Forward guidance refers to central banks     telling the public what future monetary policy will…

A: Monetary policy: - it is a tool of the government or central bank of a country in which they control…

Q: One of the advantages of monetary policy is its speed and flexibility, but there are limitations.…

A: Monetary policy is the policy of the central bank of the economy to influence the money supply in…

Q: True

A: Explanation: Fiscal policies square measure policies of the centralized to influence demand. We'd…

Q: Considering what you've learned about both fiscal and monetary policy, what are some of the benefits…

A: Monetary policy is the policy formulated by the central bank to regulate and manage the money…

Q: How does Stephanie Kelton’s explanation of Modern Monetary Theory4 (MMT) affect your view of…

A: Government spending: Government expenditure is the amount of money spent by the government on…

Q: what type of fiscal policy or monetary policy that is currently being implemented

A: The fluctuation in the economic activity is tracked by the business cycle. In an economy, the fall…

Q: Banks follow the Fed’s lead to influence the economy and prevent a financial downturn? True or false

A: Fed is the supervisor of all the banks in the nation.

Q: Which policy should be more effective to use during recession to increase spending and borrowing, or…

A: In an economy and in the short run, the aggregate demand determines the output level of the economy.…

Q: The major problem facing the economy is high unemployment and weak economic growth. The inflation…

A: The central bank of a country controls and regulates the money supply by introducing monetary policy…

Q: 14. During a period when economic growth is very strong and inflation rates are rising to…

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

Q: Imagine you're sitting around talking with your relatives during some family R&R. You hear members…

A: Modern Monetary Theory (MMT) is an alternative macroeconomic theory that views currency as a public…

Q: Assume that the prevailing interest rate in this economy is 6%. If the central bank decides to…

A: Monetary policy is a set of tools used by a country's central bank to encourage long-term economic…

Q: Most economists agree that individual consumers and business cannot pull the economy out of a severe…

A: AT some extent this statement is true because economy is big where larger numbers of buyers and…

Q: The money supply of a country has been growing for many years causing expected inflation of 8% per…

A: According to the Friedman rule, the growth of the money supply should be equal to the estimated…

Q: Explain the difference between the Keynesian and the monetarist views on how an increase in the…

A: Keynesian economics emphasizes fiscal policy to control the business cycles in the economy. Keynes…

Q: Which of the following was not proposed as an explanation of why the effectiveness monetary policy…

A: When talking about financial crisis, it can be seen that the impact of monetary policy is limited…

Q: Discuss the impact of expansionary and contractionary monetary policy, specifically the change in…

A: Monetary policy is a macroeconomic device utilized by a country's central bank or monetary position…

Q: The demand for money will increase when inflation increases. True or false

A: The demand for money is of three types. These are transaction demand for money, precautionary demand…

Q: If monetary policy tries to keep GDP above its full employment level for an extended period of time…

A: When an economy manufactures goods or products at higher economic rates than normal, it is regarded…

Q: Relevant knowledge is important because monetary policy affects all aspects of the economy as well…

A: The central bank's economics strategy is observed as monetary policy. Governments employ this…

Q: What is the current concern regarding the federal fund rate? it does not work it is too high and…

A: * ANSWER :-  * The OPTION C (it is too low leaving no room for a reduction in rates if needed)

Q: If the Fed was concerned about the economy falling into recession, it might accommodate this…

A: Reserve requirement is the amount sets by the central bank of a country at a fixed rate to hold as a…

Q: List four argumnets that favor a central Bank that is brought under the control of goverment

A: A central bank is a national institution that offers banking and financial services to other…

Q: Explain each of these statements supported by reasonable reasoning: 1. Credibility is important…

A: When product is manufactured, cost  takes place along with revenue, which results into profit and…

Q: Identify the circumstances under which budget deficits can lead to inflationary monetary policy.

A: A deficit occurs when expenses exceed revenue and indicate the financial health of a rustic. the…

Q: Compare and contrast the strengths and weaknesses of fiscal policy and monetary policy

A: fiscal policy is the government tools to correct the instability of the economy . whereas monetary…

Q: Q.1.18 The implementation lag is for monetary policy and for fiscal policy. (1) Extremely short;…

A: An implementation lag occurs when there is a delay between the duration of beginning of an economic…