1 Answers
Call
Talk Doctor Online in Bissoy App
Two expansionary monetary policy government which can be taken by government? (10 marks) Two expansionary fiscal policy steps which can be taken by government? (10 marks)
Expansionary monetary policiesOpen market operations; this refer to the practice of buying and selling on the open market in order to manage the amount of money available in banks.Interest rates;...
1 Answers 1 views
If lower exchange rate spurs exports then why wouldn’t it be a good idea of policy
makers to intervene to push the exchange rate as low as they can. Discuss
Lower exchange rate really spurs exports and the total business activity in the economy. But it wouldnrsquo;t be a good idea of policy makers to intervene to push the exchange...
1 Answers 1 views
An increase in the budget deficit is the result of: (2)
(a) Expansionary monetary policy;
(b) Contractionary monetary policy;
(c) Expansionary fiscal policy;
(d) Contractionary fiscal policy.
(c) Expansionary fiscal policy
1 Answers 1 views
If a change in government policy leads to a balance of payment deficit and fall in the exchange rate, what will be the effect of the new exchange rate level on balance of payment and exchange rate.
In case there is a change in a country's balance of payments can lead to fluctuations in the exchange rate between its currency and foreign currencies. The reverse is also...
1 Answers 1 views
An expansionary fiscal policy might include _ government spending and/or _ taxes, while a contractionary fiscal policy might include _ government spending and/or _ taxes
An expansionary fiscal policy might include increase in government spending and/or reduced taxes while a contractionary fiscal policy might include decrease in government spending and/or increased taxes.
1 Answers 1 views
Q.1.3 An increase in the budget deficit is the result of: (2) (1) Expansionary monetary policy; (2) Contractionary monetary policy; (3) Expansionary fiscal policy; (4) Contractionary fiscal policy.
(1) Expansionary fiscal policy
1 Answers 1 views
Explain when the FED would use a contractionary monetary policy and an expansionary monetary policy, and what the overall result would/could be.
Contractionary monetary policy is when the economic growth lowers down to prevent inflation. The pursue of FED is to control inflation of the economy rate of 2%.However the FED wants...
1 Answers 1 views
Country A is contemplating on imposing an export subsidy to encourage its businesses to export more. Discuss the effect of such an export subsidy.
Subsidizing national producers selling their products in foreign markets artificially increases the level of their competitiveness in comparison with local suppliers. Subsidies restrict trade flows in three main ways.1. Subsidizing...
1 Answers 1 views
If a country helps other country by means of goods, i understand. If a country helps other country by means of money, as the money is not valid in another country. How does the transaction happen?
International payments are always made in global (reserve) currency. Some of the world's currencies are accepted for most international transactions. The most popular are the U.S. dollar, the euro, and...
1 Answers 1 views
One of the following best explains consumption spending Select one: a. Spending on infrastructure b. None of the option are correct c. Spending on capital goods d. Spending on final consumer goods
\d. Spending on final consumer goods
1 Answers 1 views