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Which fiscal policy strategy would the federal government most likely use to stablize the economy?
The fiscal policy strategy that the Federal government would most likely use to stabilize the economy during times of inflation is to raise taxes. However, they could also decrease government spending.
What can the federal government do to try to bring the economy out of recession?
the federal reserve would try to lower nominal interest rate (monetary policy), not part of govt. The federal govt. would stimulate spending, either by lowering taxes or pumping money into the economy and spending more.
The us government has decided to issue federal income tax rebates to taxpayers what is the most likely goal of these rebates?
the goal is to get the consumer to increase their spending
What influences government spending?
the macroeconomic objectives being pursued by the government will greatly influence government spending . a government aiming to reduce employment and promote economic growth is likely to pursue an expansionary fiscal policy , thus increasing government spending where as a government aiming to control inflation is likely to follow a contractions policy thus reducing its spending.
What is the most likely explanation for the increase in federal government spending indicated by this graph?
The increase in federal government spending is likely attributed to several factors, including rising costs associated with social programs such as Medicare and Social Security, increased defense spending, and economic stimulus measures in response to crises like the COVID-19 pandemic. Additionally, legislative initiatives aimed at infrastructure development and public health may have contributed to this upward trend in spending. Overall, these factors reflect both demographic shifts and the need for responsive government action in times of economic challenge.
If the federal government wants to encourage businesses and consumers to spend more money it would most likely?
The federal government would most likely implement expansionary monetary policy by lowering interest rates, making borrowing cheaper for both businesses and consumers. Additionally, it could increase government spending or provide tax cuts to boost disposable income, encouraging spending. These measures aim to stimulate economic activity by enhancing consumer and business confidence.
When would the government most likely increase its spending?
When unemployment has increased
When would the government most likely decrease its spending?
. When unemployment has decreased
When would government most likely increase its spending?
When unemployment has increased
A decrease in federal defense spending in the US is likely to cause?
layoffs at a large defense contracting company
What is most likely to occur after the government increases taxes?
It reduces the money available for private sector spending.
How would the us government most likely react to a boom in the economy?
Increase government spending in order to stimulate the economy
