Describe using words and graphs the how the impact of fiscal
policy on output is different in a closed economy IS-LM model and
an open economy IS-LM model. In addition, explain carefully how the
open economy macro model depends on whether exchange rates are
fixed or flexible.
Describe using words and graphs the how the impact of fiscal
policy on output is different in a closed economy IS-LM model and
an open economy IS-LM model. In addition, explain carefully how the
open economy macro model depends on whether exchange rates are
fixed or flexible.
Answer TRUE OR FALSE.
1) A combined fiscal consolidation and monetary expansion will
lower interest rates in the IS-LM model.
2) An increase in government spending leads to a decrease in
output in the IS-LM model
3) The LM curve is horizontal at the Reserve Bank's policy
choice of the interest rate.
4) When expected inflation increases and there is no change in
nominal interest rates then real interest rates fall.
a. what allows the Fed to be independent g. what are the
problems of using fiscal policy and what are the problems of using
monetary policy h. why a balanced budget can be destabilizing.
b. what are the characteristics of a good commodity money and
why?
c what gives fiat money its value and what are the advantages
and disadvantages of fiat money
economic history
Discuss the westward expansion and the impact on Native
Americans. How has this expansion impacted the US today? What is
the influence on institutions and laws that came from the removal
of the Native Americans? about 3 paragraphs
What is fiscal policy? What are the tools of fiscal policy?
Discuss the impact of expansionary fiscal policy and specifically
the fiscal policies used during the Great Recession of 2008-2009 on
operation of business operation.
Suppose that there is a fiscal contraction and a monetary
contraction. This will cause:
a. output and interest rates to both remain constant
b. output to fall but interest rates may rise, fall, or remain
the same
c. output and interest rates to fall
d. interest rates to fall but output may rise, fall, or remain
the same