Compare the effectiveness of monetary and fiscal policies under
fixed and flexible exchange rate regimes(temporary & short
run). How do they differ in their effects on CA?
Express the fiscal and monetary policies as well as
their combined use in the IS/LM model. While observing "The US
recession of 2001", think through the effectiveness of the policy
mix adopted to aid recovery. Then consider the recession that the
US is currently experiencing: argue on the basis of your
understanding of IS/LM and the current US macroeconomics trajectory
for a specific fiscal and monetary policy response.
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)
Draw the IS-LM and Forex market graph to show the effect of
tightening of monetary policy in the US on the USD-Euro rate.
Explain your answer in words.
Analyse the effectiveness of fiscal and monetary policies
employed to fight against the economic slow-down in the March
quarter of 2020 and June quarter of 2020; and how they influenced
Australia’s economic growth.
Using IS and LM graphs, explain
PLEASE USE GRAPHS!!!!
Monetary policy which targets the interest rate
Monetary policy which targets the money supply
When each of the two targeting strategies are the most
effective in managing the business cycle