Reference no: EM132126379
Question: Which of the following are examples of fiscal policy, monetary policy, trade policy, regulatory policy - or some combination?
(A) Increase of 30% on steel tariffs to ‘‘rescue'' the depressed steel industry.
(B) Federal Open Market Committee (FOMC) votes to reduce the Federal funds rate from 3% to 2%.
(C) Congress votes to reduce all personal income tax rates by 10%.
(D) In response to the increased deficit caused by a 10% tax cut, the FOMC votes to raise the Federal funds rate back from 2% to 3%.
(E) Government passes a ‘‘gas guzzling'' tax, boosting prices of new motor vehicles that get less than 15 mpg by 10%.
(F) Because of agricultural shortages, government imposes an export ban on soybeans.
(G) Treasury Secretary says ‘‘a weak dollar is good for America.'' The value of the dollar drops 20%, and in reaction to the higher inflation, the FOMC boosts the funds rate from 6% to 8%.
(H) President decides to implement a new economic program that includes (a) personal income tax cuts, (b) corporate income tax cuts, (c) excise tax cuts, (d) increase in government spending, (e) devaluation of the dollar, (f) directive to FOMC to hold interest rates at below-equilibrium levels, and (g) wage and price controls.
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