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Using taxes and spending to control the level of GDP in the short run is known as

_________ policy.

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16y ago

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Discuss the relative volatility of short- and long-term interest rates?

short- and long-term interest rates usually move in the same direction. Yield curve is often upward, so, long-term interest rates are usually higher than short-term interest rates. short-term interest rates are often more fluctuating than long-term rates.


What would happen to real short term interest rates if the Fed kept short term market interest rates at zero and deflation occurred and was expected to continue?

Macroeconomics Question: What would happen to real short term interest rates if the Fed kept short term market interest rates at zero and deflation occurred and was expected to continue?


Would a short term monetary policy take most action in lower interest rates?

lower interest rates


Are interest rates on long term bonds usually lower or higher than interest rates on short term bonds?

Higher


What are the current interest rates on short term loans?

The current interest rates on short term loans vary depending on the lender and the borrower's creditworthiness, but typically range from 5 to 36.


When the term structure of interest rates is downward sloping and interest rates are expected to decline?

financial manager generally borrows short-term


What are the current short term CD interest rates?

The current short-term CD interest rates vary depending on the bank and the term length, but generally range from around 0.1 to 0.5.


Why are short-term interest rates typically higher than long-term interest rates?

Short-term interest rates are typically higher than long-term interest rates because of the increased uncertainty and risk associated with short-term investments. Lenders require higher returns for short-term loans to compensate for the potential fluctuations in the market and the borrower's ability to repay the loan in a shorter period of time. In contrast, long-term investments are considered less risky as they provide a more stable and predictable return over a longer period, leading to lower interest rates.


How do interest rates affect investment?

When interest rates are high, investors will consider investing in short term investments, instead of long term investments. When interest rates are low, investors will consider investing in bonds because they are safer.


In the short run an increase in the money supply results in?

lower interest rates..


What can the Federal Reserve Bank of New York do to control short term interest rates?

To control short term interest rates, the Federal Reserve Bank of New York should establish a floor on money market rates while improving monetary policy.


A normal term structure of interest rates would depict?

long-term rates higher than short-term