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

Q: Why does an increase in the required reserve ratio or in the currency drain decrease the magnitude…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: What is the difference between monetary policy and fiscal policy ? Explain

A: Monetary policy is regulated by the central bank of country,whereas fiscal policy is regulated by…

Q: Discuss some of the difficulties that may arise from enacting and carrying out fiscal policy and why…

A: Macroeconomic analysis provides a comprehensive picture of the financial status of an economy. It…

Q: What is the crowding out effect? Discuss the effectiveness of fiscal policy under the crowding out…

A: Answer: Step 1: The crowding-out effect refers to the decline in private investment due to fiscal…

Q: Under federalism, one way the national government can force state and local compliance with its…

A: The Federalism or Federal system is a system of government and it is a three-tiered system, where…

Q: What was Ben Bernanke (Federal reserve current chairman) philosophy in regard to how to deal with…

A: Philosophy of Ben Bernanke As the chairman,  Ben Bernanke took an aggressive and experimental…

Q: What are the main determinants of the federal funds rate?

A: Federal funds rate is the rate at which commercial banks borrow from and lend to each other.

Q: The government controls economic policy through the fed, though the fed is independent from the…

A: The economy involves many agents which are the producers and the consumers and the government. There…

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

A: please find the answer below.

Q: Raising taxes is   expansionary fiscal policy contractionary monetary policy contractionary fiscal…

A: Whenever the government increases the taxes, it will get money in return by making citizens pay…

Q: How might monetary policy affect the degree of crowding out resulting from fiscal policy?

A: Aggregate Demand: The aggregate demand is a sum of private investment demand, government…

Q: When the Federal Reserve's Open Market Committee raises the Fed Funds rate they are attempting to…

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

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: Why would a Monetarist advocate a balanced budget amendment to the Constitution?

A: The monetarist school of economic thought is an important one amongst the different schools of…

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: What is differance between Tools of monetary policy and fiscal policy?

A: Fiscal policy refers to the government policy that stabilizes the economy through bring changes in…

Q: what is fiscal policy, monetary policy and its advantages and disadvantages?

A: The fiscal policy is the way by which a government adjusts its spending levels and tax rates to…

Q: The federal funds rate is the interest rate that:

A: The “federal funds rate” is like the interest on that loan – it’s what the bank with extra reserves…

Q: Let's say that the Fed is concerned about recession. It would use [Select] doing so is [Select]…

A: The Fed is the short name for the Federal Reserve System, which is also the central bank of the US.…

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

A: Fiscal policy is also known as the budgetory policy of the government. Monetary and Fiscal policy…

Q: Differentiate between monetary and fiscal policy.

A: Monetary policy: When the policy measures are being taken by the central bank of a country in order…

Q: the three federal tools of monetary control and how to apply to increase the money supply

A: Monetary policy:  The Fed uses monetary policy to affect the amount of money in the economy. This…

Q: In an attempt to promote renewable energy, the government provides an annual rebate to those who…

A: The problem is to identify the type of economic policy represented by a government initiative that…

Q: thority of the Fêderal Reserve? The Federal Reserve is required by the constitution. The Federal…

A: The Federal Reserve System, is the national bank of the US and apparently the most impressive…

Q: Why did Friedman and the Monetarists believe that monetary misuse accompanied every severe recession…

A: Inflation means the rise in the price level of goods and services in an economy. It means as the…

Q: In April 2022 theFederal Reserve boosted its target for the Federal funds rate for the first time in…

A: Central banks oversee a nation's currency circulation, execute monetary strategies, and monitor…

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: Which of the following statements is true about joint optimal fiscal and monetary policy? "Despite…

A: Despite the need to raise government revenue in non-lump-sum manner obtaining economic efficiency…

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: differences between Monetary and Fiscal Policy

A: Monetary Policy refers to the measures taken by the monetary authority to control the supply of…

Q: Give two reasons why monetary policy might be better at closing an expansionary gap than fiscal…

A: Monetary policy:- These are the policy measures that are being taken introduced by the central bank…

Q: Prior to the Great Recession, the Federal Reserve followed a restricted reserves policy.  True…

A: The Great Recession: The great recession which started in Dec 2007 and lasted for almost 2 years was…

Q: 1. What is a minor but important change you would like to see applied to fiscal policy? 2. What is…

A: Here we need to address the changes in fiscal and monetary policy which will increase the…

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: subordinate to 8. Study Questions and Problems #8 independent of The Federal Reserve is set up to be…

A: The Federal Reserve is set up to be largely independent of Congress and the president in order to…

Q: The main goal of the Federal Reserve is the unemployment rate.  True  False

A: False, because the main goal of Federal Reserve is to provide money supply which is consistent with…