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Match each type of policy with the example that best fits its definition. A. Protectionist policy The government goes into debt to buy a large number of vehicles for the military. B. Fiscal policy The?
Pro-
One of the major issues in macroeconomics is disagreement in the debate over policy activism versus policy rules What exactly is that disagreement Any implications?
This disagreement stems from differing views on government intervention in the economy. Policy activism requires that the monetary and fiscal policy be used in such a way as to improve the economy. This type of reasoning dates back to Keynes, who believed that the economy sometimes needs government help to avoid stagnation. Policy rules require instead that the government use such things as a constant-growth-rate policy so as to accommodate economic growth, but not to attempt to stimulate it. In other words, the economy is best left to its own devices, and government intervention causes more problems than it solves.
What is the difference between fiscal policy and monetary policy?
The government uses both fiscal and monetary policy to stimulate the economy (get it growing) and also to slow the rate of growth down when it gets overheated. With fiscal policy the government influences the economy by changing how the government collects and spends money. The most common tools that the government enacts to effect fiscal policy include:• Increased Spending on new government programs and initiatives (such as job creation programs). This has the effect of increasing demand for labor and can result in lower unemployment levels• Automatic Fiscal Programs are programs that take effect immediately to help correct the slide in the economy. Probably the single best example of this is unemployment insurance which a person can file for as soon as they lose their job.• Tax Cuts are another tool that government uses to stimulate demand for goods and services when the economy takes a turn for the worse. The effect of a tax break is to put more money back in the pockets of businesses and consumers which they can spend and put back to work in the economy.Monetary Policy, on the other hand, involves the manipulation of the available money supply within the economy. In the United States, the role of manipulating the money supply falls to the Fed or the central bank in the US. Not only does the Fed have overall responsibility for the country's monetary policy, but it also has responsibility for issuing currency and overseeing bank operations. An increasing money supply puts more money in the hands of consumers which they turn around and spend - a decreasing money supply does just the opposite.In order to increase or decrease the money supply, the Fed has four principal levers which it pulls to try and effect change. The first thing that the Fed can do is to alter the reserve ratio which is the percentage of assets that commercial banks have to keep on deposit at one of the Federal Reserve Banks - the higher the reserve ratio, the less money that banks can lend out to the general public.Another way the Fed can control the money supply is by adjusting the federal funds rate (fed funds rate). The federal funds rate is a short-term borrowing rate that banks have established amongst themselves for short-term borrowing. Another way the Fed can adjust the money supply is by raising or lowering the discount rate which is the rate at which commercial banks can borrow money from the Fed. The higher the rate (or interest charged on the loan), the less inclined commercial banks are to borrow and a smaller amount of money will be available in the market. And lastly, the Fed can buy and sell government bonds. The buying of bonds translates into income for the US government, which can in turn put more money into the economy.i
Which phrase best describes the economic policy of laissez- fairs?
A laissez-faire economic policy involves a minimum of government interference in business.
Which phrase best describes the economic policy of laissez-fairs?
A laissez-faire economic policy involves a minimum of government interference in business.
Match each type of policy with the example that best fits its definition. A. Protectionist policy The government goes into debt to buy a large number of vehicles for the military. B. Fiscal policy The?
Pro-
Which of the following terms best represents the process of obtaining revenue through taxation and the subsequent spending of the tax dollars in order to operate the government?
fiscal policy
What is the the best definition of a fiscal irregularity?
erronious payment
What is the best definition of a fiscal irregularity in DTS?
erronious payment
What part of speech is best policy in sentence honesty is the best policy?
Best is adjective and policy is noun
Are panda bear hamsters best in pairs or single?
single pairs fight
What is the proverb of honesty?
"Honesty is the best policy."
What is the best definition of pecuniary liability in DTS?
The responsibility to repay the Government for fiscal irregularities.
The appropriation section of this fund cite best relates to which fiscal concept in the above example?
Purpose
How do you say honesty still the best policy in dutch?
Honesty is the best policy = Eerlijk duurt het langst (this is the official saying, but not the literal translation of 'still the best policy')Honesty still the best policy = Eerlijk duurt nog steeds het langst
The event that best illustrated the policy of detente was?
the event that best illustrated the policy of detente was?
Which is the best pension policy available in India for old age pension?
best pension policy for the age of41
