Statements of expansionary fiscal and monetary policies

Assignment Help Macroeconomics
Reference no: EM1314471

Currently, the extent of our economic difficulties has caused the economic policymakers to choose fiscal and monetary policies that are both expansionary. Though many economists believe this mix of policy is appropriate to our current circumstances, there are concerns of problems that these policies might create.  Analyze the below statements.

a. Though these policies have some benefits, none of these benefits offer solace to the problem of bulging federal budget deficits and the increased debt burden we are placing on our future American taxpayers, namely our children.

b. These policies are likely to stoke the fires of inflation, making it a more challenging problem in the future.

c. These policies will restrict private, business investment spending given their impact on credit and interest rates, thereby limiting future long-term economic growth.

d. These policies will likely cause a weakening in the American dollar as a result.

Reference no: EM1314471

Questions Cloud

Determining the impact of fiscal : If increased government spending and tax cuts were equally effective in stimulating aggregate demand, which fiscal tool would you select? Why?
Plotting a scatter diagram : Plot a scatter diagram of the results with Depth of Water as the independent variable.
Linear equations in augmented form : Linear equations in augmented form.
Solve the question based on bonds : Solve the question based on bonds and The bonds have a coupon rate that is greater than their yield to maturity
Statements of expansionary fiscal and monetary policies : Currently, the extent of our economic difficulties has caused the economic policymakers to choose fiscal and monetary policies that are both expansionary.
Difference in the ending inventory balances : Describe the reason for any difference in the ending inventory balances under the two costing methods and the impact of this difference on reported net operating income.
Calculation of yield to maturity on bond with given data : Calculation of yield to maturity on bond with given data and The bonds had a coupon rate of 4.5%
Relationship between real gdp and potential gdp : Use aggregate demand (AD) and aggregate supply (AS) model in which the short run aggregate supply curve slopes upwards to illustrate the equilibrium level of real GDP and prices if the economy is operating:
Evaluate operating income for 2017 : Evaluate operating income for 2017, assuming the firm uses the variable-costing approach to product costing. (Do not prepare a statement.)

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Price elasticity of demand using mid point formula

Graph the accompanying demand data, and then use the midpoint formula for E d to determine price elasticity of demand for each of the four possible $1 price changes.

  Economic statements about purely competitive firms

Assume that a price support system for cotton requires the federal government to pay farmers $3,000 for each acre to not plant cotton. How would you shift either the supply or demand curve for cotton to describe the effect of this action? In your a..

  Compute the reservation wage

Cindy gains utility from consumption and leisure. The most leisure she can consume in a week is 168 hours.

  Balanced budget and finding capital labour ratio

Consider the following Solow model of growth. Both population and work force grow at the rate of n=1% per year in a closed economy.

  Ad and as curve and give explanation for full employment

Suppose that there is an "inflation scare," that is, suppose market participants increase their expectations of future inflation.

  Evaluate the range of marginal revenues

Evaluate the range of marginal revenues

  Demand and supply analysis tax credit

How do you think each of the following affected the world price of oil? (Use demand and supply analysis.)

  Lifetime employment system in japan

Japan has traditionally had an employment system characterized by a "lifetime" employment relationship between employer and employee and salaries that are based on length of service with the employer-starting low

  Appreciated and depreciated value of euro

Explain whether the evidence above suggests whether the dollar is appreciating or depreciating relative to the Euro. What is your conclusion? Explain how you come to that conclusion.

  Gdp forecast and inflation

If I told you that GDP was forecast to rise by a bit more than 3% over the next year, what would that mean to you?  What should you be asking about the forecast?

  Expansionary and contractionary monetary policy

Discuss three automatic expenditures in the federal budget. What is the difference between discretionary fiscal policy and automatic stabilizers?

  Impact of declining the energy prices on equlibrium prices

Use the aggregate demand-aggregate supply model to illustrate graphically the short-run and long-run impact of this decline on output and prices.

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