Discretionary fiscal policy is policy that permanently changes government spending to slow the economy. True False

Q: Describe three ways in which government spending can be financed

A: Government spending on goods and services is one of the major components of aggregate demand.…

Q: Fiscal policy determines the level of interest rates.True or False

A: Fiscal policy: It refers to the policy which is used by the government so that it can make…

Q: If government policy makers were worried about the inflationary potential of the economy, which of…

A: When government worried about inflation, it can use contractionary fiscal policy to reduce the…

Q: If the objective of fiscal policy is to stabilize (achieve full-employment (potential) GDP and…

A: A balanced budget is a circumstance in monetary planning or the budgeting technique where total…

Q: Explain and show the consequence for fiscal policy if the marginal propensity to consume is a…

A: Fiscal policies are the public authority made approaches made to control, fortify and support the…

Q: discuss the economic implications of  Joe Biden’s fiscal stimulus for the US economy and the…

A: The economies around the globe are focused on their development and growth in various areas. The…

Q: Expansionary fiscal policy occurs when the government decreases spending or increases taxes to…

A: Fiscal policy is the tool used by government to control the economy.

Q: Explain how the conduct of fiscal policy affects consumption and investment in equilibrium.

A: Fiscal policy is a macroeconomic policy that is implemented by the government for monitoring and…

Q: Which of the following is NOT a discretionary fiscal policy A. Making automatic stabilizers more…

A: Fiscal policy refers to the impact on the economy that is produced by governmental spending and…

Q: During a recession, automatic stabilizers cause the federal deficit to Group of answer choices…

A: Budget is the term used to describe the government's document that details its receipts and outlays.…

Q: If a government is using fiscal policy, this means that it is using. economy. spending; interbank…

A: Fiscal policy is a macroeconomic tool used by governments to regulate their spending and taxation…

Q: If the government runs a budget deficit, it means that there is an excess of government spending…

A: The government is a sector of the economy. It works for the welfare of the people.  It collects…

Q: If the government tries to reduce inflation when the production level in the country is higher than…

A: Fiscal policy is a tool used bu government to bring the economy back to full employment.

Q: Will a discretionary fiscal policy action that involves spending $100 billion have the same overall…

A: The discretionary fiscal policy refers to changes in the tax rate or the level of government…

Q: Calculate fiscal deficit when Borrowings is $15,000 and the interest is $600

A: # Fiscal deficit is the difference between total expenditure and total receipts or spending of the…

Q: Which of the following will not undermine the effectiveness of fiscal policy, and prevent it from…

A: Fiscal policy refers to the use of government spending, taxation, and borrowing to influence the…

Q: Fiscal policy is a plan for taxing and spending that is designed to steer an economy in a desired…

A: Fiscal policy is the policy of the government that is used to shift the aggregate demand curve.…

Q: 11.1 Due to the pandemic, the federal government announced many measures to help those negatively…

A: Government undertakes fiscal policy to maintain output and inflation in the economy. It refers to…

Q: Identify and explain the fiscal policy implementation issues in detail along with relevant example.

A: Fiscal policy implies the use of government spending and taxation to influence the economy's overall…

Q: Discretionary fiscal policy includes Mumple Choice automatic stabzers ta decisions from previous…

A: Governments can react more aggressively to changing economic conditions when they can implement…

Q: What is the main advantage of automatic stabilizers over discretionary fiscal policy?

A: Fiscal policy(FP) tools can be implemented in two types that are automatic stabilizers and…

Q: Government spending in Robok is $150 billion, and its only tax is an income tax with a marginal tax…

A: Government spending= $150 billion Marginal tax rate= 0.3 Government budget= $440

Q: Fiscal stance refers to: Select one: A. A government that takes a tough stance when it comes to…

A: Fiscal policy refers to government actions that result in a change in the level of economic activity…

Q: The Government has a $0.8 Trillion Growth target. What fiscal policy should they implement if MPS =…

A: To stimulate growth, government uses expansionary fiscal policy, by increasing spending (G) or…

Q: Assume today is October 20, 2021. In which quarter of fiscal year 2022 is the federal budget?

A: The federal budget is the government's estimate of revenue and spending for each fiscal year. The…

Q: Discuss two reasons why discretionary fiscal policy (expansionary & contractionary) may be…

A: Contractionary fiscal policy:- When the government either slashes expenditure or hikes taxes, it is…

Q: Which of the following would be most likely to induce Congress and the president to conduct…

A: Fiscal policy refers to the policy under which the state or government uses instruments such as…

Q: Explain what is Fiscal policy and how to use it in order to overcome the current inflationary…

A: Inflation is the rate at which the general level of prices for goods and services is increasing over…

Q: f an increase in government spending is accompanied by a reduction in spending by firms and…

A: The GDP or the gross domestic product is defined as the value of all final goods and services newly…

Q: Explain how time lags present an additional problem in fiscal policy.

A: Fiscal policy is policy of expenditure and taxes. Fiscal policy is operated by the government. Lags…

Q: Distinguish between a discretionary fiscal policy and a non - discretionary fiscal policy. Give…

A: The use of government spending and tax policies to influence economic conditions, particularly…

Q: One purpose of discretionary fiscal policy is to Multiple Choice O increase government spending…

A: An economy's overall health can be influenced by a government's tax, spending, and borrowing…

Q: Automatic stabilizers   a)increase consumption during a recession above what it would otherwise be…

A: Automatic stabilizers work to maintain the equilibrium in the economy.  Too much of inflation or…

Q: Discuss the challenges of predicting the effects of discretionary fiscal policy on aggregate…

A: fiscal policy refers to the policy of taxation and expenditures of government. Government makes…

Q: Fiscal policy is used not only to influence economic activity but also for political purposes.…

A: Government fiscal policy refers to the expense that a government needs to provide goods and services…

Q: Expansionary fiscal policy refers to (increases, decreases) in government spending or ases,…

A: In expansionary fiscal policy, government cuts tax rates(income tax & corporate tax) and boost…

Q: Which of the following could NOT be contractionary fiscal policy tool? OA) decreasing government…

A: Decreasing taxes is an expansionary economic policy tool, not a contractionary one. Contractionary…

Q: Explain fiscal policy and its role in stabilizing economies during recessions.

A: Fiscal policy is an instrumental component in the hands of legislatures to influence a country's…

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: Which is considered expansionary fiscal policy? a)a tax increase for wealthy individuals b)an…

A: Fiscal Policy is  the use of tax policy and the government expenditure that can influence the…

Q: Why is identifying potential opportunities, and managing within predictable limits for fiscal policy…

A: Fiscal policy is an important tool for dealing with the economy on account of its capacity to…

Q: List what specific, deliberate actions the federal government could take to enact expansionary…

A: Expansionary fiscal policy is aimed at increasing aggregate demand when the economy is in a…

Q: Find the value of Fiscal deficit if the primary deficit is $800 and the Interest payment is $280.

A: Whenever basically the government borrows money for generally spending beyond its earning, it's far…