Monetary and Fiscal
Policy:
Explain with the aid of diagrams, how
an increase in Government spending in a small open economy affects
the Aggregate Demand curve:
a. Assuming a flexible exchange
rate
b. Assuming a fixed exchange rate.
NO HANDWRITINGS PLEASE. I CAN'T READ MOST OF THE HANDWRITINGS,
UNFORTUNATELY. THANKS IN ADVANCE FOR TYPING ANSWERS
Explain Monetary and Fiscal Policies.
a) How does contractionary monetary policy works? Explain by
graphs ( interest rate, exchange rate, consumption, import,
export)
b) How does expansionary fiscal policy works? Explain by graphs.
( interest rate, exchange rate, consumption, import, export)
Explain, with aid of diagrams, the effects of an expansionary
fiscal policy under the classical theory and the Keynesian model.
Compare and contrast the effects under the two models. How would
these differences affect their conclusion on the role of
government? (20%)
explain/examine how both governments’ cash rate (monetary),
expenditure and tax (fiscal) policies were used to impact economic
outcomes and manage the GFC
1.
Inflation can be controlled through ________.
stable pricing policies
fiscal and monetary policies
effective trade policies
monitoring competition
2.
All of these are primary activities in a firm's value chain
EXCEPT ________.
operations
human resource management
customer service
inbound and outbound logistics
3.
Which of these teaches people to be considerate and
understanding of other people's feelings and emotions?
Sensitivity training
Cultural orientation
Watching foreign soap operas
...