What role does the department of the treasury play

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1. What is fiscal policy?
The use of government taxation and expenditure policies for the purpose of achieving macroeconomic goal.

2. What are the relations between government spending, the marginal propensity to consume, the marginal propensity to save, and the multiplier effect?

3. What are some of the problems with using fiscal policy in an effective manner?

4. What role did the Great Depression play in changing the government's approach to the economy?

5. What is stagflation and how did it challenge Keynesian orthodoxy?

6. What is supply side economics and how does it function?

7. What is the crowding out effect?
A reduction in private spending as a result of higher interest rates generated by budget deficits that are financed by borrowing in the private loanable funds market.

8. What is the new classical approach to the stimulatory impact of fiscal policy implemented through deficit spending?

9. What role does the department of the Treasury play in the American economy?

10. What role does the Federal Reserve Banking system play in managing the American policy?

Reference no: EM13201766

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