The US government and Federal Reserve enacted fiscal and
monetary policies to reduce the effects of...
The US government and Federal Reserve enacted fiscal and
monetary policies to reduce the effects of the Great Recession. Did
their policies help? Why, or why not? Explain what happened, in
words, with the help of a IS-LM graph.
With respect to recent Federal Government Fiscal Stimulus
packages and Federal Reserve policies to control liquidity and
counter the credit crisis, what has the Federal Government and the
Federal Reserve been doing? Why? What policy tools have they been
using?
With respect to recent Federal Government Fiscal Stimulus
packages and Federal Reserve policies to control liquidity and
counter the credit crisis, what has the Federal Government and the
Federal Reserve been doing? Why? What policy tools have they been
using?
Inflation has traditionally been a concern of the Federal Reserve.
Recently, there has been the possibility of deflation. Should the
Fed be concerned with deflation of prices? What about targeting
'nominal GDP'?
When inflation occurs some economic agents gain and...
Monetary Policy: What works?
Monetary policy by the US Federal Reserve is important for the
US economy. However, economists disagree about several aspects of
Federal Reserve decision-making powers including the composition of
the Federal Reserve committees, Federal Reserve goals, and the
actual impact Federal Reserve of policy on the economy.
Should the Federal Reserve Board focus exclusively on the
problem of inflation?
What other goals are appropriate for Federal Reserve
policy?
What is the appropriate goal for the inflation rate?...
During the depression, the U.S central bank, the Federal
Reserve, enacted policies that increased the money supply by 6%
.
1). what happens to the level of output and the price level in
the short run and in the long run.
2). Assume that the velocity is constant, what is the percentage
change of output and price level in the short run and long run
(Hint: use quantity theory of money).
3). What happens to unemployment in the short run...
How would both the Federal Reserve and Government carry out
contractionary (Monetary or Fiscal) policy? What event in the
overall economy would be the opportune time to use contractionary
policy? Why is it difficult for the Government to use
contractionary fiscal policy?
4. How to use the three monetary policies and the three fiscal
policies to reduce BOP deficit? Please explain how each policy
works, i.e., how economic entities react to the policy changes so
that the deficit will be reduced.
Fiscal policies are those which are enacted and changed by the
government which majorly involves changing the government spending
in the economy or changing the tax rates. Let us consider one of
the most important taxes, the income tax. An income tax is a
proportion of the income that you have to pay as taxes to the
government. Since, the tax is progressive, the higher the income,
the higher is the tax and thus it affects you as an individual...