If the economy is in a recession, discretionary fiscal policy can lower taxes and increase spending while the Fed enacts an expansionary monetary policy. It will be done by lowering the fed funds rate or through quantitative easing.
Q. Which limit of fiscal policy would describe why it is risky to assume people will respond the same way to a tax as they have in the past?
the aggregate demand curve to shift to the right. Which limit of fiscal policy would describe why it is risky to assume people will respond the same way to a tax as they have in the past? fiscal policies, like higher spending and tax cuts that encourage economic growth.
Table of Contents
- Q. Which limit of fiscal policy would describe why it is risky to assume people will respond the same way to a tax as they have in the past?
- Q. What are some problems with fiscal policy?
- Q. What are the merits of a discretionary monetary policy?
- Q. Which action is an example of supply side fiscal policy?
- Q. Is the government’s use of taxes and government spending to affect the economy?
- Q. Which among the following assets is the most liquid?
- Q. Which among the following assets is the least liquid?
- Q. Which of the following is the most liquid assets to a commercial bank?
- Q. Which of the following assets is the most liquid a inventory B Real Estate C money in the bank d a piece of equipment?
- Q. Which of the following assets is the most liquid a inventory B real estate?
- Q. What are the liquid assets of a commercial bank?
Q. What are some problems with fiscal policy?
Poor information. Fiscal policy will suffer if the government has poor information. E.g. If the government believes there is going to be a recession, they will increase AD, however, if this forecast was wrong and the economy grew too fast, the government action would cause inflation.
Q. What are the merits of a discretionary monetary policy?
This environment is more conducive to discretionary monetary policy. Some of the perceived advantages of non-discretionary monetary policy include simplicity, predictability, credibility, and insulation from political pressures.
Q. Which action is an example of supply side fiscal policy?
Examples of Supply-Side Policies Policies supported by supply-side economists include: Reducing marginal tax rates. Lower tax rates on interest earned from savings. Higher tax credits on investment.
Q. Is the government’s use of taxes and government spending to affect the economy?
Fiscal policy is the use of government spending and taxation to influence the economy. Governments use fiscal policy to influence the level of aggregate demand in the economy in an effort to achieve the economic objectives of price stability, full employment, and economic growth.
Q. Which among the following assets is the most liquid?
Cash on hand is considered the most liquid type of liquid asset since it is cash itself. Cash is legal tender that an individual or company can use to make payments on liability obligations.
Q. Which among the following assets is the least liquid?
Money
Q. Which of the following is the most liquid assets to a commercial bank?
While loans are usually thought to be less liquid than securities, Federal funds—one-day loans to other banks—are probably the most liquid asset banks can hold next to cash.
Q. Which of the following assets is the most liquid a inventory B Real Estate C money in the bank d a piece of equipment?
Real estate C. Money in the bank D. A piece of equipment. Money in the bank is the asset that is the most liquid.
Q. Which of the following assets is the most liquid a inventory B real estate?
“Money in the bank” is the most liquid asset.
Q. What are the liquid assets of a commercial bank?
The most common types of liquid assets for businesses, from banks to electronics manufacturers, are cash deposits in checking and savings accounts, and marketable securities. The accounts receivable, or payments owed to the company, are part of the company’s liquid assets for that period as well.
