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.
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;...
Contractionary PolicyContractionary fiscal policy happens when the government and its public agencies lowers its expenditures, while also decreasing spending or increasing taxes at the same time. When a government reduces its...
Expansionary fiscal policy - This a type of fiscal policy that entails decreasing tax rates and increasing government expenditures. Usually, the objective of expansionary fiscal policy is to combat recessionary...
Expansionary policies are policies that involves decreasing taxes , increasing government expenditure or both.On the AD side ,a decrease in taxes means household have more disposable income to spend and...
1) Open Market OperationsThis is seen clear when central banks buy or sell securities. They are either bought from or sold to the country's private banks. When the central bank buys securities, it adds...
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...
If the President and Congress would use a contractionary fiscal policy and an expansionary fiscal policy, then it couldn't be effective, because these policies are opposite to each other and...
1 Answers
1 views
Log in to ask questions, provide answers, or leave comments.
