Gdp-fiscal and monetary policy

Assignment Help Finance Basics
Reference no: EM1333391

1. Suppose that the real GDP is below potential GDP. Answer the two questions below.

a. What fiscal policy tools could be used to stimulate the economy?

b. What monetary policy tools can the Federal Reserve use to stimulate the economy and increase economic growth. Please identify at least two specific tools.

2. What should the Fed do if it wanted to reduce inflation in terms of the money supply?

3. Both monetary policy and fiscal policy encounter the problems of lags. Discuss the kinds of lags they encounter and the degree of difficulties they present to policymakers.

4. Discuss and explain the concepts of the federal deficit and the national debt. How statistically significant are they for the United States as compared to other countries? Explain how the deficits and the debt arise.

Reference no: EM1333391


Write a Review


Finance Basics Questions & Answers

  Firm''s operating as well as cash conversion cycles

Firm's operating as well as cash conversion cycles and decision on speeding up collections

  Long-term contract that spans multiple periods of time

If revenue is realized isn't always easily determined. In the normal cash for product or service exchange is easy as recognition is almost always immediate. How about when the ticket is purchased for the concert or travel for some future period? W..

  Forecasted interest expense on balance of debt

Suppose that all extra debt in the form of the line of credit is added at the ending of year that means that you must base forecasted interest expense on balance of debt at the commencement of year.

  Computation of bond''s nominal yield to maturity

Computation of bond's nominal yield to maturity and their nominal yield to call and what return should investors expect to earn on this bond

  Computation and analysis of property dividend

Computation and analysis of property dividend and The corporation has asked you for advice then what do you recommend.

  Computing present value and future value

Find out the future value one year from now of $7,000 investment at a 3 percent annual compound interest rate. Also calculate the future value if the investment is made for two years.

  Computation of default risk premium on the corporate bond

Computation of default risk premium on the corporate bond and market's forecast for given years and what is the market's forecast for 1-year rates 1 year from now

  Explain capital gain from bonds

Explain Capital Gain from Bonds and Meade Corporation bonds mature in 6 years and have a yield to maturity of 8.5 percent

  Role of economic value and replacement value

Critically evaluate these comments. Please don't wander; concentrate on the issues stated by quotation.

  Present value problem

You charged $2400 on your credit card for holiday gifts. Your credit card company charges you 8% annual interest

  Computation of free cash flow

Computation of Free cash flow for the company's depreciation expense is $500,000 and it has no amortization expense.

  Account receivables using decision making

Account receivables using decision making and what would be Collins's incremental after tax return on investment

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