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In an attempt to promote renewable energy, the government provides an annual rebate to those who install solar panels on their roofs. What type of economic policy would this represent?
a) Fiscal policy
b) Monetary policy
c) Both fiscal policy and monetary policy
d) Neither fiscal nor monetary policy
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Solved in 4 steps
- In an attempt to promote renewable energy, the government provides an annual rebate to those who install solar panels on their roofs. What type of economic policy would this represent? a) Fiscal policy b) Monetary policy c) Both fiscal policy and monetary policy d) Neither fiscal nor monetary policy Asap.Use the following scenarios to compare the effectiveness of monetary and fiscal policies with respect to the following: (a) An increase in aggregate demand to recover from a recession. (b) An increase in aggregate supply to increase employment.Which economic policies affect a government's budget and include the increase or decrease the money supply?
- Differentiate between monetary and fiscal policy.Identify the appropriate government policy should implement in eacheconomic situation below and discuss its possible effects or results. GOVERNMENT POLICY (FISCAL POLICY OR MONETARY POLICY)As you have learned in Unit 8 (this week), monetary and fiscal policy play important roles in economic stimulation and or stabilization. In this regard: Start with a brief introduction that explains use of Government policy to control the economy. When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy? Look at both. When is it inappropriate to use monetary and fiscal policy to stimulate or stabilize the economy? Look at both. What specific fiscal policy tools would you use to stimulate aggregate demand and how? What specific monetary policy tools would you use to stimulate aggregate demand and how? What is your conclusion, should policymakers use the monetary and or fiscal policy, or a combination of both, to stimulate aggregate demand? Explain your reasoning.
- What is the difference between fiscal and monetary policy? What fiscal and monetary steps can the government and the central bank undertake during times of recession to help the economy? What are the pros and cons of fiscal and monetary policy?Use the following scenarios to compare the effectiveness of monetary and fiscal policies with respect to the following: (c) Time lag differences (d) Influencing interest ratesWhy do price levels increase when the government adopts fiscal or monetary policy to correct the economy when it faces a recession and high unemployment?
- Question 8 Which of the following are true about fiscal and monetary policy? There may be more than one answer. a) A change in tax policies can affect output in the long-run. b) A change in government purchases can affect output in the short-run. c) Since money supply can only affect prices, it can never affect output in the long-run. d) Since money supply can only affect prices, it can never affect output in the short-run.Why does the budget require a forecast of the economy? Under what circumstances would actual government spending and tax revenue fall to match the budget as approved?Read the articles below and answer the following question: Economists are rethinking monetary and fiscal policy. That’s a potentially positive development. and RETHINKING MONETARY POLICY IN A CHANGING WORLD Why is it important to rethink fiscal and monetary policies? Justify your answers using the evidences provided in the article and relevant other resources.