A. Sometimes in order to stimulate more consumer spending, the federal government will compel banks to...

A. Sometimes in order to stimulate more consumer spending, the federal government will compel banks to relax lending standards for a time to entice more people and more business organizations to take out more loans than they would normally do under more restrictive standards.

Is the relaxing of lending standards a wise policy to implement from time-to-time, or is the risk to the overall economy too great to make use of such a policy? Explain in detail why or why not, and also keep in mind that such a relaxed standards policy played a significant role in the economic troubles the country endured primarily in 2007-2008.

B. Since business taxes increase the cost of doing business, and these lead to higher consumer prices and fewer investments, would both business organizations and consumers benefit from lower business taxes, or would only business organizations benefit? Explain.

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Rahul Sunny answered 2 years ago

A. Sometimes in order to stimulate more consumer spending, the federal government will compel banks to...

A. Sometimes in order to stimulate more consumer spending, the federal government will compel banks to relax lending standards for a time to entice more people and more business organizations to take out more loans than they would normally do under more restrictive standards. Is the relaxing of lending standards a wise policy to implement from time-to-time, or is the risk to the overall economy too great to make use of such a policy? Explain in detail why or why...

Sometimes in order to stimulate more consumer spending, the federal government will compel banks to relax...

Sometimes in order to stimulate more consumer spending, the federal government will compel banks to relax lending standards for a time to entice more people and more business organizations to take out more loans than they would normally do under more restrictive standards. Is the relaxing of lending standards a wise policy to implement from time-to-time, or is the risk to the overall economy too great to make use of such a policy? Explain in detail why or why not,...

sometimes in order to simulate more cunsumer and business spending, the federal government will compel banks...

sometimes in order to simulate more cunsumer and business spending, the federal government will compel banks to relax lending standards for a time to entice individuals and business organizations to take out more loans than they would do under more restrictive standards is the relaxing of lending standards a wise government policy to implement from time to time, or is the risk to the overall economy too great to make use of such a policy? explain in detail why or...

5. In order to financially stimulate the nation, the Federal government injected $900 billion dollars into...

5. In order to financially stimulate the nation, the Federal government injected $900 billion dollars into the economy. However, the results were less than spectacular. One reason could have been a failure to understand the marginal propensity to consume. Assume the marginal propensity to consume (MPC) was only 0.3. How much of that $900 billion went to increased consumption? Where did the rest of the money go? Increased consumption: ________________________ Where did the rest go? _________________________ Using MPC = 0.3,...

Would it be more likely for the federal government to increase taxes or decrease spending?

Do you think that companies are becoming greener or must the government and consumer movements compel...

Do you think that companies are becoming greener or must the government and consumer movements compel this to happen? Will it happen fast enough to avert climate catastrophe? Or do you think that ‘greening’ is an inappropriate goal? (150 words) What does sustainable enterprise mean and are there any?(150 words)

According to Neoclassical economists the following is a means to stimulate economic growth? government spending to...

According to Neoclassical economists the following is a means to stimulate economic growth? government spending to increase demand high taxes low taxes The Phillips curve illustrates a trade-off between ________ and ________. the natural rate of unemployment rate; the actual unemployment rate the natural rate of unemployment; inflation unemployment; inflation The theory of ________ assumes that individuals will use all information available to them to form the most accurate possible expectations about the future. 答案选项组 rational expectations Keynesian economics adaptive...

Mandatory spending is spending that: A) includes all federal government spending. B) supports programs that do...

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explain how the various categories of federal government spending (such as spending on entitlements, or infrastructure...

explain how the various categories of federal government spending (such as spending on entitlements, or infrastructure or basic research) qualify as either consumption or investment spending. explain how the various categories of federal government spending (such as spending on entitlements, or infrastructure or basic research) qualify as either consumption or investment spending.

Suppose that government spending makes private firms more productive; for example, government spending on roads and...

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A. Sometimes in order to stimulate more consumer spending, the federal government will compel banks to...

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A. Sometimes in order to stimulate more consumer spending, the federal government will compel banks to...

Sometimes in order to stimulate more consumer spending, the federal government will compel banks to relax...

sometimes in order to simulate more cunsumer and business spending, the federal government will compel banks...

5. In order to financially stimulate the nation, the Federal government injected $900 billion dollars into...

Would it be more likely for the federal government to increase taxes or decrease spending?

Do you think that companies are becoming greener or must the government and consumer movements compel...

According to Neoclassical economists the following is a means to stimulate economic growth? government spending to...

Mandatory spending is spending that: A) includes all federal government spending. B) supports programs that do...

explain how the various categories of federal government spending (such as spending on entitlements, or infrastructure...

Suppose that government spending makes private firms more productive; for example, government spending on roads and...