Question

All the following actions represent fiscal policy EXCEPT A. a decrease in government spending. B. an...

All the following actions represent fiscal policy EXCEPT

A.

a decrease in government spending.

B.

an increase in corporate income tax rates.

C.

a reduction in individual income tax rates.

D.

an increase in the money supply.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A fiscal policy is any policy which is undertaken by the government. In this policy the government adjust its revenue/ expenditure to cause changes in the economy. The other kind is monetary policy undertaken by central banks and it deal with adjusting the economy's interest rate. Based on this briefing -

A. This is a fiscal policy as it is undertaken by the government and decreases its expenditure.

B. This is a fiscal policy because government isuue tax rules. Here increase in corporate tax, increases government revenue.

C. Also a fiscal policy. This reduces income tax rate and hence there is a decrease in the governments revenue.

D. This is the correct option. Money supply is decided and adjusted by the Central bank. This policy increases money supply and decreases interest rates. So this is a monetary policy. Option D is correct.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following can be categorized under fiscal policy? A. Increase in money supply B....
Which of the following can be categorized under fiscal policy? A. Increase in money supply B. Decrease in money supply C. Increase in federal funds rate D. Decrease in reserve requirement E. Increase in tax rates Calculate the government spending multiplier if, an increase in government spending by $5 million increases real GDP by $25 million. A. 0.2 B. 0.5 C. 2 D. 5 E. 6
An expansionary fiscal policy is represented by: a-An increase in taxes b-A decrease in government spending...
An expansionary fiscal policy is represented by: a-An increase in taxes b-A decrease in government spending c-An increase in price level d-A decrease in real output
Government action during expansionary fiscal policy would involve ________, whereas contractionary fiscal policy would involve ________....
Government action during expansionary fiscal policy would involve ________, whereas contractionary fiscal policy would involve ________. A) increasing the money supply; increasing personal income taxes B) increasing corporate income taxes; raising interest rates C) increasing transfer payments; increasing corporate income taxes D) increasing government purchases; increasing transfer payments
24) An increase in government spending will likely have which of the following effects? A) a...
24) An increase in government spending will likely have which of the following effects? A) a rightward shift in the IS curve B) a leftward shift in the IS curve C) an upward shift in the LM curve D) a downward shift in the LM curve 25) If government spending and taxes increase by the same amount, A) the IS curve does not shift B) the IS curve shift leftward C) the IS curve shifts rightward D) the LM curve...
Which of the following statements regarding fiscal policy are true? Select all that apply. Select one...
Which of the following statements regarding fiscal policy are true? Select all that apply. Select one or more: a. fiscal policy affects taxes and/or government spending b. fiscal policy is directed by the Federal Reserve in the United States c. fiscal policy changes the money supply 2. According to the multiplier effect, if MPC = 0.6, then what is the effect of a $100,000 increase in government spending on aggregate demand? Answer:
. Which of the following are concerns regarding expansionary fiscal policy, i.e. the increase in government...
. Which of the following are concerns regarding expansionary fiscal policy, i.e. the increase in government spending and decreases in taxes a. it will decrease wages b. It will create an asset bubble c. it will cause deflation d. It will increase budget deficits and the national debt 2. Savings Accounts are part of which stock of money? a. M2 b. Monetary base c. All of the above d. M1 3. The main goal of monetary policy is to a....
If the government implements an expansionary fiscal policy, what action can the central bank take to...
If the government implements an expansionary fiscal policy, what action can the central bank take to maintain a stable itnerest rate? a. Increase the required reserve ratio b. increase personal income tax rates c. decrease personal income tax rates d. sell government bonds e. buy government bonds
4- What is it called when the Fed takes actions that result in an increase in...
4- What is it called when the Fed takes actions that result in an increase in the money supply? A. Contractionary fiscal policy B. Expansionary fiscal policy C. Contractionary monetary policy D. Expansionary monetary policy 5. If the federal government finances a deficit by borrowing, we can expect A. National debt will decrease B. More income taxes will be collected C. Higher interest rates due to the higher demand for loanable funds D. Higher Inflation in the economy E. All...
12. Keynes said that to fight a recession the government should. A. decrease transfer payments. B....
12. Keynes said that to fight a recession the government should. A. decrease transfer payments. B. conduct expansionary fiscal policy (decrease taxes and/or g increase government spending). C. conduct contractionary fiscal policy (increase taxes and/or decrease government spending). D. do nothing.               13. An increase in disposable income would lead to A. increase in the DLF B. decrease in the DLF C. increase in the SLF D. decrease in the SLF 14. A recession would lead to A. increase in...
9) Following a decrease in government spending, as the price level falls we would expect the...
9) Following a decrease in government spending, as the price level falls we would expect the level of interest rates to ____ and investment to ____ A) decrease;decrease B) decrease;increase C) increase;decreas D) increase;increase 10) When an economy is in a recession, the Fed needs to do a(n) ___ monetary policy. This policy would____ prices A) expansionary; lower B) expansionary; raise C) contractionary ; lower D) contractionary; raise 11) we know the following notation: V= velocity of money M= money...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT