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What monetary policy tool is considered an expansionary tool?
Decreasing the discount rate.
Which monetary policy tool is considered an expansionary tool A.cutting taxes B.decreasing the discount rate C.increasing the reserve requirements D.increasing government spending?
The monetary policy tool considered expansionary is B. decreasing the discount rate. Lowering the discount rate encourages banks to borrow more from the central bank, which increases the money supply and stimulates economic activity. While cutting taxes and increasing government spending are fiscal policy tools, increasing reserve requirements is contractionary rather than expansionary.
What are the tools of monetary and fiscal policy in India?
Monetary policy is a tool in India that is used the Reserve Bank to regulate interest rates. Fiscal policy in India is a tool that regulates their economy.
What is the relationship between fiscal policy and the budget?
Fiscal policy refers to the government's use of taxation and spending to influence the economy, while the budget is a detailed financial plan that outlines these fiscal policies. The budget reflects the government's fiscal policy decisions, detailing projected revenues and expenditures for a specific period. Essentially, fiscal policy guides the creation of the budget, and the budget serves as a tool for implementing fiscal policy objectives. Together, they play a critical role in managing economic activity and achieving policy goals.
What tool is use for both cutting taxes and purchasing government securities?
These are fiscal policy tools. They help you to make money while also saving money at the same time.
What monetary policy tool is considered an expansionary tool?
Decreasing the discount rate.
Which monetary policy tool is considered an expansionary tool A.cutting taxes B.decreasing the discount rate C.increasing the reserve requirements D.increasing government spending?
The monetary policy tool considered expansionary is B. decreasing the discount rate. Lowering the discount rate encourages banks to borrow more from the central bank, which increases the money supply and stimulates economic activity. While cutting taxes and increasing government spending are fiscal policy tools, increasing reserve requirements is contractionary rather than expansionary.
What are the tools of monetary and fiscal policy in India?
Monetary policy is a tool in India that is used the Reserve Bank to regulate interest rates. Fiscal policy in India is a tool that regulates their economy.
What is the relationship between fiscal policy and the budget?
Fiscal policy refers to the government's use of taxation and spending to influence the economy, while the budget is a detailed financial plan that outlines these fiscal policies. The budget reflects the government's fiscal policy decisions, detailing projected revenues and expenditures for a specific period. Essentially, fiscal policy guides the creation of the budget, and the budget serves as a tool for implementing fiscal policy objectives. Together, they play a critical role in managing economic activity and achieving policy goals.
What tool is use for both cutting taxes and purchasing government securities?
These are fiscal policy tools. They help you to make money while also saving money at the same time.
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.
Is decrease taxes an appropriate fiscal policy response?
Decreasing taxes can be an appropriate fiscal policy response, particularly during periods of economic downturn or recession, as it can stimulate consumer spending and investment by increasing disposable income. However, the effectiveness of this approach depends on the current economic context, such as the level of public debt and the existing fiscal deficit. If the economy is already strong, tax cuts may lead to budget shortfalls and exacerbate income inequality. Ultimately, the appropriateness of tax cuts as a fiscal policy tool should be evaluated based on specific economic conditions and goals.
How did John Maynard Keynes influence monetary policy?
designed for the short termKeynes advocated that Fiscal Policy was a more powerful tool. this is mainly due to the fact that at the time he lived there were very few central banks that were truly independent from the government. The central bank had to be independent for monetary policy to function properly.Keynes did not address monetary policy and this is one of the main distinctions between him and Friedman.
What is the Fed's most powerful tool for influencing monetary policy?
By and large, open-market operations comprise the most powerful tool the Fed has to influence monetary policy.
What are the tools of fiscal federalism?
The basic tool in fiscal federalism is (Points : 1)the federal government's power of the purse. the federal government's ability to raise armies. the federal government's ability to sue states. the Interstate Commerce Clause.
Which is not a policy tool used by the Fed?
Making tax cuts
Local Security Policy tool is accessed from where?
Administrative Tools applet
