Which of the following would most likely occur if the federal government decreased its spending and reduced the size of the budget deficit during a period of full employment? a. The rate of inflation would decline. b. Interest rates would fall. c. The rate of inflation would rise. d. The government spending multiplier would double.
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- Hello, can I get help with this question I can't figure it out? I'm debating what to choose from. The chart is in attachments and the download data. this is one question in a sentence asking to choose from the multiple choice. It's completing the sentence blanks. This is the question: How does the change in the monetary base help in the government's efforts to finance its deficits? The increase in the monetary base was created by the A. president B. Treasury C. Senate D. Federal Reserve and used to A. sell B. buy government securities—in effect A. paying off that amount B. increasing by that amount of government debt by printing money.Please no written by hand solutions Read Eye on the Multiplier in the eText or click on the icon to open a copy. Then answer the following questions During the second quarter of 2009, the economy was in recession and the output gap was $0 8 trillion How much fiscal stimulus would be required to close the output gap if the multiplier was as large as the President's Council of Economic Advisors believes? How much fiscal stimulus would be required if the multiplier was as large as Robert Barro believes? The President's Council of Economic Advisors says the fiscal policy multiplier is, so to close an output gap of $0.8 trillion, fiscal stimulus of $ trillion is needed Robert Barro says the fiscal policy multiplier is 0. so to close an output gap of $0 8 trillion, fiscal stimulus of $ trillion is needed.QUESTION The Cyclically Adjusted Budget Balance is an estimate of what the Fiscal Balance would be if _______________. a. Equilibrium GDP is greater than Potential GDP. b. The Equilibrium GDP is equal to Potential GDP. c. Equilibrium GDP is greater than Potential GDP. d. What the budget balance would be at the trough of the Business Cycle. QUESTION When the FED conducts monetary policy, it relies primarily on a. Direct targeting of the monetary aggregates such as M1 and M2 along with changes in consumer lending rates. b. Only consumer lending rates. c. Open market operations and changes in the fed funds rate. d. Only changes in the Fed funds rate. QUESTION Given the following data: Demand Deposits are equal to 1000, Time Deposits are equal to 500, Large Savings Accounts are equal to 300, and the public holds 50 in cash. If the Reserve Requirement on Demand Deposits is 10%, what is the Monetary Base? a. 100…
- f Congress and the president decide an expansionary fiscal policy is necessary, then they should target higher interest rates by decreasing the money supply. enact policies that increase government spending and decrease taxes. Oenact policies that decrease government spending and increase taxes. O target lower interest rates by increasing the money supply. 2001-20 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.QUESTION 3 Match the following terms with their definitions. Recognition Lag Policy Lag Implementation Lag Impact Lag Discretionary Macroeconomic Policy Automatic Stabilizers Fiscal Policy…Paragraph Styles For questions 34 - 39 choose whether each is an example of: a discretionary fiscal policy b. automatic stabilizer C. monetary policy d. none of the above 34. The federal government increased spending on firefighting in Califomia. 35. The Federal Reserve sells Treasury securities to tighten the money supply. 36. The total amount the federal government spends on unemployment compensation rises during a recession. 37. In 2010 the US government introduced a $700B infrastructure program to create jobs. 38. In 2021 the US government passed a $1T program to replace failing infrastructure such as roads and bridges. 39. The federal government enacts a temporary tax cut across all income brackets. states) ※一 ** PrtSc F5 F6 F7 F8 F9 F10 F11 F12
- True or False and why? 6. Fiscal policies tend to be automatic as a result of legislation. 7. Taxes always act as automatic stabilizers. 8. Contractionary monetary policies result to lower investment spending and higher incomes. 9. Inflation targeting is a mandate exclusive to the Bangko Sentral ng Pilipinas. 10. Expansionary monetary policies result to an increase in real GDP.One of the fiscal measures of dealing with inflation is: a. Implement a budget surplus b. Operate a budget deficit c. Increase the rate of interest d. Operate a balance budgetSelect the correct option and explain why it is correct : a) Critics of discretionary fiscal policy argue that discretionary policy : 1) has uncertain effects 2) has an impact lag that is too short. 3) raises more inflation than policy rules. 4) has long recognition and implementation lags. b) The largest share of expenditures by state and local governemtnn is for : 1) Transfer payment 2) national defense 3) law enforcement 4) purchase of goods and services c) Countercyclical fiscal policy is designed to : 1) shift the inflation adjustment line so that real GDP is equal to potential GDP 2) reduce unemployment further when it is already at a low level 3) increase potential GDP 4) shift the aggregate demand curve so that real GDP equals potential GDP. d) Which of the following types of taxes provide the most revenue for the federal governemtn 1) Payroll taxes 2) income taxes 3) Sales taxes 4) corporate taxes
- As long as tax rates are not very high, a decrease in tax rates will tend to a. increase the budget deficit b. decrease the budget deficit c. leave the budget deficit unchanged d. cause the budget deficit to first decrease then increaseB. Move the Economy back to Potential GDP C. Do nothing D. Decrease Inflation, Lower Interest Rates, Increase Spending 33. If an Economy is producing below Potential GDP, the correct form of action is: A. Expansionary Monetary Policy combined with Contractionary Fiscal Policy B. Contractionary Monetary Policy combined with Expansionary Fiscal Policy C. Expansionary Monetary Policy or Expansionary Contractionary Policy or some Combination of both D. Contractionary Monetary and Fiscal Policy in the Same Amounts xt Predictions: On Editor Suggestions: Showing Et P + 51°1. Increasing government spending when the economy is in a recession is an example of: A. active monetary policy B. active fiscal policy C. passive monetary policy D. passive fiscal policy 2. Because monetary and fiscal lags are long and variable: A. stronger policies must be used B. successful stabilization policy is completely impossible C. attempts to stabilize the economy are often destabilizing D. policy must be completely passive