When the economy is in a recession, the government can use expansionary iscal policy to stimulate and encourage économic growth. Which of the following scenarios represent expansionary fiscal policies...


When the economy is in a recession, the government can use expansionary iscal policy to stimulate and encourage économic growth.<br>Which of the following scenarios represent expansionary fiscal policies from both a supply perspective and a demand perspective?<br>Choose one or more:<br>OA The Federal Reserve increases the money supply and lowers the interest rate while the government<br>simultaneously reduces future taxes.<br>OB. The government lowers tax rates and issues a partial refund of taxes that have already been paid.<br>OC The government raises tax rates and reduces payments of unemployment benefits.<br>OD The government lowers tax rates and undertakes a replacement.of old bridges and roads.<br>Suppose that, during a recession, the government borrows money to provide free wireless Internet access in urban areas. Whichof the<br>following statements are correct?<br>Choose one or more:<br>RA This policy will likely be accompanied by an impact lag as the policy takes time to make its way to the people.<br>O B. The provision of free Internet service is an example of an automatic stabilizer.<br>OC. Crowding-out will occur as individuals choose to rely on free Internet service instead of purchasing their<br>own,<br>O D. The free wireless Internet access in urban areas will likely raise interest rates as the government borrows<br>more money to finance the purchase.<br>OE The government is engaging in contractionary fiscal policy.<br>

Extracted text: When the economy is in a recession, the government can use expansionary iscal policy to stimulate and encourage économic growth. Which of the following scenarios represent expansionary fiscal policies from both a supply perspective and a demand perspective? Choose one or more: OA The Federal Reserve increases the money supply and lowers the interest rate while the government simultaneously reduces future taxes. OB. The government lowers tax rates and issues a partial refund of taxes that have already been paid. OC The government raises tax rates and reduces payments of unemployment benefits. OD The government lowers tax rates and undertakes a replacement.of old bridges and roads. Suppose that, during a recession, the government borrows money to provide free wireless Internet access in urban areas. Whichof the following statements are correct? Choose one or more: RA This policy will likely be accompanied by an impact lag as the policy takes time to make its way to the people. O B. The provision of free Internet service is an example of an automatic stabilizer. OC. Crowding-out will occur as individuals choose to rely on free Internet service instead of purchasing their own, O D. The free wireless Internet access in urban areas will likely raise interest rates as the government borrows more money to finance the purchase. OE The government is engaging in contractionary fiscal policy.

Jun 09, 2022
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