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412. Not as great as monetary policy for month come month stabilisation. Many economists think this since fiscal policy effects the economy at a slower pace th…View the full answer
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Transcribed picture text: inquiry 412 pts many economists believe that fiscal plan is: far better than financial policy for month-to-moath stabilization much better than financial policy because that "fine-tuning the economy Not as great as financial policy because that month-to-month stabilization not very good at pushing the economic climate in a particular direction concern 422 pts If you space told the the govemment had actually an actual budget deficit of $50 billion, climate you would: understand that fiscal plan was expansionary know that fiscal plan was producing a cyclical deficit know that fiscal plan was contractionary Not have the ability to determine the direction that fiscal plan from the info givern question 432 pts rise in the cyclical deficits will instantly increase the cyclically changed budget deficit TRUE FALSE question 442 pts The American Recovery and Reinvestment act of 2009: implementeda 5787 exchange rate package of tax cuts and also government expenditure increases reduced taxes through $152 billion, dispersed primarily as rebate check to taxpayers substantially lowered interest rates in an attempt to stimalate invest spending. Created a $700 exchange rate rescue package for financial institutions. Question 452 pts i beg your pardon of the complying with expansionary fiscal policy alters would be many favored by those economists who think that the gowernment is too huge and inefficient? A S40 billion rise in federal government spending A $40 ballion tax reduced A S10 billion taxation cut and also $30 billion rise in federal government spending A $20 billion taxes cut and also $20 billion rise in government spending concern 462 pts given a marginal propensity come save-.25, the policy-makers minimize both government spending and also autonomous count by $1 exchange rate each. Ceteris paribus, we should expect that aggregate GDP will certainly emain the same decrease by S 1 billion. Boost by $ 1 billion decrease through $7 billion. Decrease by $4 billion. Inquiry 472 pts provided the following: budget Deficit-20 profession Deficit-10 savings 30 follow to our leakages and injections knowledge, the level that investment have to be 10. 40. One of the other answers space correct 20.