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Q: Do increases in autonomous spending have an expansionary effect and make higher levels of real income consistent with a given interest rate?
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How does a expansionary monetary policy affect the interest rate overall price level and GDP?

expansionary monetary policy increases money supply by lowering interest rates


Definition of monetary policies?

Monetary policy is referred to as either being an expansionary policy, or a contractionary policy, where an expansionary policy increases the total supply of money in the economy, and a contractionary policy decreases the total money supply. Expansionary policy is traditionally used to combat unemployment in a recession by lowering interest rates, while contractionary policy involves raising interest rates in order to combat inflation. Monetary policy should be contrasted with fiscal policy, which refers to government borrowing, spending and taxation. More useful Information here: www.vinayakjobs.com .


Can Financing expansionary fiscal policy by increasing the deficit does not generally affect interest rates or inflation?

Expansionary fiscal policy or running the printing presses usually causes inflation. Sometimes it causes hyperinflation. It caused both the inflation and interest rate to rise to 20% under the Carter administration.


Expansionary fiscal policy includes?

Expansionary fiscal policy is meant to expand the economy by ending a recession earlier, stimulating buying and business success, and decreasing the unemployment rate. This policy is often paired with the lowering of interest rates.


What is the rate of interest for GP fund in autonomous body?

What is rate of interest on General Provident Fund from April, 2012.


If interest rate increases will inflution increase or decrease?

If interest rate increases will inflution increase or decrease?"


What is the relationship between demand for money and interest rates?

as interest rates increase, demand for money increases.


What are some of the uses of compound interest in business?

compound interest increases interest more than simple interest


If expected inflation increases interest rates are likely to increase?

Yes, inflation and increases in interest rates usually go hand-in-hand, though inflation is not the sole cause of an increase in interest rates


Shape of the IS curve when investment is perfectly interest elastic?

the IS curve in this case will be perfectly horizontal. An expansionary fiscal policy will be ineffective because an increase in the interest rate discourage all private sector investment. There will be full crowding out of investment in such a case...


As the interest rate increases the present value of an amount to be received at the end of a fixed period?

increases


When inflation increases interest rates go .?

duck it