Compare effect of expansionary monetary and fiscal policy

Assignment Help Business Economics
Reference no: EM131161986

If the interest rates are zero bound, compare the effect of an expansionary monetary and fiscal policy. Draw graphs to show these effects and also explain in words. (Hint: Don’t consider negative interest rates. If interest rate is zero, will monetary policy have any effect?)

Reference no: EM131161986

Questions Cloud

Historical reason and theological reason : Give one historical reason and one theological reason for the split between Sunni and Shi’a Islam. A historical reason is a practical matter of political or economics. A theological reason is based on an explicitly religious idea. The material in Fis..
Tendency for supply and demand to equilibrate : The market mechanism is the tendency for supply and demand to equilibrate, so that there is neither excess demand nor excess supply. Provide a graphical and written explanation of that statement.
Discuss the moral hazard referred to conflicts of interest : Discuss the moral hazard referred to as Conflicts of Interest. Give a recent example of one that existed and discuss the actual or proposed remedy. Give your analysis of whether this remedy adequately addresses the problem. Explain your rationale.
Discuss the tools of monetary policy : Discuss the tools of Monetary Policy in the United States. Discuss the effects of each tool and explore the associated impact on conflicting goals.
Compare effect of expansionary monetary and fiscal policy : If the interest rates are zero bound, compare the effect of an expansionary monetary and fiscal policy. Draw graphs to show these effects and also explain in words. (Hint: Don’t consider negative interest rates. If interest rate is zero, will monetar..
Use present value calculations when analyzing policies : Why do we use present value calculations when analyzing policies that have costs and benefits that play out over time? Why is the choice of discount rate so important?
Firms can earn profits in long run in monopoly and oligopoly : Why is it that firms can earn profits in the long run in monopoly and oligopoly but not in monopolistic competition and perfect competition? What can firms do in monopolistic competition or perfect competition to make the short run last as long as po..
When banks hold excess reserves : When banks hold excess reserves, they: a) increase the amount of loans to the public b) reduce the actual money multiplier c) increase the money supply d) increase the reserve requirement
Household production consists : Household production consists of. The deportation of illegal aliens may create jobs on a one-to-one basis for native workers if

Reviews

Write a Review

Business Economics Questions & Answers

  Rationale behind the choice of target or acquirer

What is the rationale behind the choice of target or acquirer, if appropriate for your opening bid and your overall bidding strategy.

  Industry uses labor and capital in its production process

Assume an industry uses labor and capital in its production process. The government places a modest minimum wage on this industry above the market clearing equilibrium wage. If firms in this industry are price takers in the labor market, how do you e..

  Costs of obtaining investment capital for domestic projects

Greater access to foreign direct investment among developing nations has increased the costs of obtaining investment capital for domestic projects that promote economic growth. Global public goods such as health care are everywhere and are easy to id..

  Statements are potentially valid arguments

You have gone through two years of medical school but are suddenly wondering whether you wouldn't be happier as a musician. Indicate if the following statements are potentially valid arguments or not? Explain.

  The producer in the perfectly competitive market

The producer in the perfectly competitive market above will pick a level of production such that:

  Firm is monopoly versus perfectly competitive firm

Using the ideas we discuss this week, we are able to make clear statements on when a firm should operate and when it should shut down. When is it sensible for a firm to shutdown? What actions might a firm take to stay in operation in the long run? Do..

  How much profit will the firm make if it maximizes profit

The production function is f(x)=4x1/2 if the price of the commodity produced is $60 per unit and the cost of the input is $20 per unit, how much profit will the firm make if it maximizes profit?

  Describe the output level where average variable costs

Describe the output level where average variable costs are minimized. Determine the output level where marginal costs are minimized.

  Part of the monopolistic competition market structure

Name a product you purchased that would be part of the monopolistic competition market structure. Why do you think it is part of this market structure?

  Fed doubles growth rate of quantity of money in the economy

Suppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth will change which of the following?

  Find the output level for highland commodities

A typical firm in a perfectly competitive market has a cost structure described by the equation: C = 25 − 4QF + Q2F where QF is measured in thousands of units. Using the profit-maximizing condition, P = MC, write an equation for the firm’s supply cur..

  Find breakeven quantity or quantities

Q=4000-4p, where P is selling price per unit and Q is quantity demanded.   V= $25/unit which is the revenue per unit and Fixed cost = $10025. (a) Find Breakeven quantity or quantities, (b) find maximum revenue, (c) find the maximum profit.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd