WebOct 9, 2024 · Learning the difference between fiscal policy and monetary policy is essential to understanding who does what when it comes to the federal government and the Federal Reserve. The short answer is that Congress and the administration conduct fiscal policy, while the Fed conducts monetary policy. Both types of policy can have a … WebEconomics questions and answers. Fiscal policy refers to the changes in government s choices regarding the overall level of government spending and taxes to affect the behavior of the economy. Fiscal policy can expand or contract aggregate demand. The government sometimes uses the fiscal policy instruments in an attempt to stabilize the economy.
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WebExpert Answer. Q35: The correct option is – option 2. With the help of fiscal policy, a government adjusts its spending levels and tax rates in order to monitor and influence a nation's economy. Expansionary fiscal policy is also kn …. Check all of the following that apply to fiscal policy. Assumption is that the economy self-corrects ... WebCheck all of the following that are disadvantages of fiscal policy. recognition lag legislative lag effectiveness lag may worsen the problem can lead to larger deficits can crowd-out private sector spending. Check all of the following that may cause savings to not equal investment according to Keynes. how to set up bose cinemate universal remote
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WebStudy with Quizlet and memorize flashcards containing terms like Discretionary fiscal policy refers to A. any change in government spending or taxes that destabilizes the economy. B. the authority that the president has to change personal income tax rates. C. intentional changes in taxes and government expenditures made by Congress to … WebFinal answer. Step 1/1. Automatic fiscal policy: Refers to changes in government spending or taxation that occur automatically in response to changes in economic conditions. Example of automatic fiscal policy includes: unemployment benefits, progressive income taxes, and corporate profits taxes. These policies are automatically triggered when ... WebAn expansionary fiscal policy may end up decreasing aggregate demand because of crowding-out effect. Increased government borrowing leads to an increase in interest rates, which leads to a decrease in aggregate demand. The economy may be slow because of shortage of resources rather than lower demand. In this case, fiscal policy will not help ... nothing box comedy