The higher the interest sensitivity of investment the   a. less effective are both monetary and fiscal policies. b. less effective is monetary policy and the more effective is fiscal policy. c. less effective is fiscal policy and the more effective is monetary policy. d. more effective are both monetary and fiscal policies.

Q: Which fiscal policy is meant to decrease aggregate demand? a. Divisionary b. Built in c.…

A: Fiscal Policy is the changes made in the economic conditions by the change in government spending or…

Q: Other things being equal, a decrease in the money supply will: A. decrease both investment spending…

A: Money supply is defined as the amount of money that is available with public for the purpose of…

Q: QUESTION 4 If income tax rates are based on nomir OA their taxes fall as their income f. OB. an…

A: If income tax rates are based on nominal income , as inflation increases , taxpayers will see an…

Q: If the economy is at point E, what policy should be implemented, contractionary or expansionary?…

A: Fiscal policy involves changes in government spending and tax rates. Changes in the fiscal policy…

Q: What is an example of federal investment? a. Federal reserve monetary policy, specifically selling…

A: Federal investment  It's the fraction of federal spending that is designed to provide long term…

Q: Why might increasing taxes as a fiscal policy be a more difficult policy than the use of monetary…

A: Why might increasing taxes as a fiscal policy be a more difficult policy than the use of monetary…

Q: According to the Keynesian framework, ____________ in _______________ may cause inflation, but not a…

A: Inflation usually means rise in prices and and recession is such a period where less demand are seen…

Q: 30. Increasing the debt ceiling is tied to the increase in the CPI. а. b. must be approved by…

A: The debt ceiling refers to the amount of debt that the nation should have in its budget. An increase…

Q: Instructions: Enter your answer as a whole number. If you are entering a negative number include a…

A: AD is aggregate demand curve which shows total quantity demanded in the economy at various prices.AS…

Q: Finance Minister Enoch Godongwana announced during his budget speech that South Africans can receive…

A: Fiscal policy is the use of government revenue and spending measures to influence the overall…

Q: Which of the following statements about Keynes' contribution to macroeconomics is correct? A Keynes…

A: Option B is the correct answer   Keynes argued that depressions and recessions were almost always…

Q: In the long run, the government budget will add to sustained inflation if. Oa Deficits are always…

A: Answer: b In the long run, the government will add to sustained inflation if continual deficits are…

Q: Consider that in 2017, the government decides to increase government spending to $1000 million.…

A: A governme­nt's taxing and spending practices are calle­d fiscal policy. It impacts the economy.…

Q: A tax cut shifts aggregate demand A. by less than the tax cut. B. by the same amount as the tax…

A: (Q) A tax cut shifts the aggregate demand A. by less than the tax cut. B. by the same amount as…

Q: If the US government runs a budget deficit then a it is lowering the stock of public debt. b it is…

A: The budget deficit is explained by the situation where the government expenditure in excess of the…

Q: Explain whether the following stati:,,.nents arc true,false, or uncertain.a. "lnflation hurts…

A: Inflation refers to the increase in the price level from one period to another. Inflation is…

Q: Crowding out will be greater   A. the more sensitive investment spending is to changes in the…

A: GDP is the gross domestic product which is the value of newly produced goods and services in a…

Q: Pls help with below homework, explain the correct answer throughly.

A: Meaning of Closed Economy: The term closed economy refers to the situation under which there…

Q: What is generally true of consumers in a recession? a. The rich suffer as the poor cut back on…

A: A recession refers to an economic downturn described by a critical and sustained decrease in…

Q: The idea that new spending creates more new spending is known as the: a. crowding-out effect. b.…

A: Aggregate demand is the sum of consumption, investment, government spending and net export. AD = C +…

Q: Economists have a high regard for Paul Volcker because it was he who decided to have 12 regional…

A: Paul Volcker served as a chairman of the Board of Governors of the Federal Reserve System from 1979…

Q: C MPA a MPB ISB ISA the Fed will To prevent a Consider figure, if there is a sharp increase in…

A: A sharp increase in consumer confidence implies that consumers will spend more than before. If…

Q: f a combination of Brexit measures and Covid-19 restrictions results in a recession then how might…

A: f Brexit causes a recession, the country's government and the Bank of England will pursue…

Q: Question 2. a. What does stagflation mean? b. When does stagflation occur? Use AD-AS diagram. c. How…

A: a)Stagflation is defined by weak economic development and relatively high unemployment, often known…

Q: In AD/AS analysis, fiscal policy affects the economy through: OA. Both the AS and AD curves. OB. The…

A: The economy's output is not always at the potential level in the short run causing some adverse…

Q: the Federal Reserve raises the discount rate, the Federal Reserve is enacting

A: Discount rate is the interest rate charged by the central bank for the loans provided by it to the…

Q: To combat a recession, the Keynesian fiscal policy recommends the Government: Select one: a.…

A: The Keynesian proposition would result in the aggregate demand theory which would lead to the…

Q: Classical economists believed in raising the budget deficit to cure inflation. O True O False

A: The statement is false

Q: Briefly discuss the two points below: a) When we look at the economy of an entire country…

A: Government and entrepreneurship are commonly blamed for the disparities in growth rates. The two…

Q: A fiscal policy proposes cuts in tax rates on businesses in order to to stimulate investment and…

A: Fiscal policy refers to the one that is implemented by the government with the aim of stabilizing…

Q: Price Level Use this Figure to answer the following question LRAS PL₂ PL₁ PL BE O a. E₁ O b. Ej O c…

A: Aggregate demand is the sum of consumption, investment, government spending and net export.…

Q: Answer the next four questions based on the following diagn C+I+G 200 1600 Show all your work Based…

A: Given the data from the above graph we have, Autonomous consumption(a)= 200National income or GDP…

Q: 17. Which of the following is used as a remedial measure during inflation in an economy? a.…

A: Meaning of Inflation: The term inflation refers to the situation under which there is an excessive…

Q: Which statement is most likely consistent with the classical view? O The Congress should set…

A: According to the classical view, classical economists put little focus/emphasis on the use of fiscal…

Q: What is the effect of a government budget surplus on the real interest rate and investment? A…

A: A budget is a financial plan that defines the government's expenditures and revenues for a specific…

Q: In the short-run, a tax increase Select an answer and submit. For keyboard navigation, use the…

A: Whren the government follows contractionary fiscal policy, the higher tax will result in income to…

Q: image attached

A: An economy expands as the aggregate demand(AD) rises. This creates excess demand at the existing…

Q: What is the level of consumption and investment? Do consumption, investment and government…

A: The goods market equilibrium is at the point where the Y that is income is equal to the sum of…

Q: According to new classical economists, A a change in the money supply will affect real GDP only if…

A: Monetary policy is a set of measures and actions taken by a central bank to regulate and control a…

Q: Using a correctly labelled aggregate demand and aggregate supply diagram, show how the increase in…

A: In the short run, the aggregate demand curve is downward sloping and the aggregate supply curve is…

Q: Keynesian economists argue that facing an economic recession. and are the surest way to ensure full…

A: The economies around the world tend to depend upon the working of the government, and also the…

Q: The graph below depicts an economy where an increase in aggregate demand has caused Inflation.…

A: Aggregate demand is the total demand for finished products and services at a given time. It is…

Q: In a closed economy, in the short-run fiscal is more effective at decreasing unemployment, when:…

A: In a market economy, decisions are taken by the market forces and the government has limited…

Q: What is the real interest rate if Mr. Nasser took a loan of OMR 10000 and the nominal interest rate…

A: In economics, interest rate refers to the amount charged by the lenders on the borrowers for any…

Q: How do transfer payments in the form of unemployment compensation work as an automatic fiscal…

A: Transfer payments are payments from the government to individuals or households, such as…

Q: In 2001, the Bush Administration increased spending by $100 billion and raised taxes by $70 billion…

A: Government spending refers to the total amount of money that a government spends on goods, services,…