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When would the government step in and spend more Revenue and or lower taxes to stimulate demand?
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∙ 7y ago
They would do this when the economy is weak.
Anya King
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When would the government step in and spend more revenue and lower taxes to stimulate demand?
They would do this when the economy is weak.
Which of these is not one of the ways in which the Federal Reserve can affect the country's monetary policy?
It can spend more revenue and/or lower taxes to stimulate demand.
If the country is in a recession what will the government do to the interest rates to stimulate the economy?
lower
What is the term used to define when government revenue is lower than government expenses?
Budget surplus.
What are the ideas of john maynard keynes?
he believed that deficit spending in recessions or depressions would stimulate the nation's economy.. in other words, he realized that the government has to spend money to help save the economy
In an aggregate demand-aggregate supply diagram what will equal decreases in government spending and taxes do?
No effect. Spending will decrease Aggregate Demand, lower taxes will raise Aggregate Demand
What is a fiscal policy tool used to stimulate the economy Reducing inefficient employment of resources Lower interest rates Increased imports Increased government purchases?
increased government purchases.
How did Reagan suggest keeping the deficit down if taxes were cut?
The hope was that lower taxes would stimulate business expansion, resulting in more jobs and more income, thus increasing revenue even at the lower rate. He also hoped to cut expenditures .
What are the Advantages and disadvantages of rising prices?
Pros: Higher profit margin - Higher contribution - More revenue per unit sold Cons: Lower demand for price elastic products - Fewer sold - Less total revenue
How does supply and demand affect the price of a product?
the higher the demand the higher the price.the lower the demand the lower the price.
Did JFK lower taxes?
He proposed lower taxes as a way to stimulate the economy
Identify the two policies that the federal government can follow in order to make the business cycle less disruptive?
federal government can lower interest rates and stimulate spending to make the business cycle less disruptive.
