Expansionary Study guides, Class notes & Summaries

Fiscal Policy - Answer the use of government spending and revenue collection to influence the economy what fiscal policy involves - Answer the government changing the levels of taxation and government spending in order to influence Aggregate Demand (AD) and the level of economic activity. Aggregate Demand - Answer the total level of planned expenditure in an economy (AD = C+ I + G + X - M) purposes of Fiscal Policy - Answer - Stimulate economic growth in a period of a recession....

ECN 211 Final Test Exam Questions & Revised Correct Answers With Explanation Latest Update | Already Passed!! 1. When economic growth ___, fiscal policy should be ____. a. slows; contractionary b. accelerates; accelerated c. slows; expansionary d. accelerates; expansionary - ANSWER : slows, expansionary 1. Expansionary monetary policy aids the economy by a. encouraging imports through a lower exchange rate. b. encouraging exports through a higher exchange rate. c. encouraging imp...

Multiple-Choice Questions (100 points) 1. You own shares in a well-managed diversified company. If a court finds that one of the company's products was seriously defective and orders the company to pay damages to all purchasers of the product, then the price of your shares will _____, holding other factors constant. a) decrease. b) be indeterminate. c) either increase or decrease. d) increase. e) not change. 2. In the 1960s imports and exports each equaled less than ...

Kindly direct content-related queries to your e-tutor on the discussion forum of your e-tutors website on myUnisa and contact the university administration if you have any problems regarding all others matters. How can students contact Unisa? Visit the myUnisa website. Click on the "Contact" icon where you will find all the necessary contact details. Please only contact your lecturers with content-related queries if you are unsatisfied with the response of your e-tutor. We trust ...

Fiscal policy correct answers Government decisions about the level of taxation or government spending AD= correct answers C+I+G+NX Government can affect AD by correct answers - changing G - changing taxes an increase in government spending shifts AD.... a decrease in government spending shifts AD.... correct answers out/to the right in/to the left Multiplier effect and crowding out indirectly effect correct answers C and I components of AD Tax policy directly effects AD thr...

UNIQUE NUMBER: PREVIEW OF QUESTION 1 1. 1 Reference: Prescribed book PG 361 The inverse relationship between the price level and the quantity of aggregate output demanded by households, firms, the government, and the rest of the world 1. 1 Reference: Prescribed book PG 361 The inverse relationship between the price level and the quantity of aggregate output demanded by households, firms, the government, and the rest of the world 2. 1 Reference: Prescribed book PG 362 If a fall...

WGU C201 Business Acumenbalanced budget situation in which total revenues raised by taxes equal the total proposed spending for the year. budget organization's plan for how it will raise and spend money during a given period of time. taxes, fees, and borrowing. The primary sources of government funds to cover the costs of the annual budget are budget deficit situation in which the government spends more than the amount of money it raises through taxes. budget surplus ex...

A company's stock price jumped when it announced that its revenue had decreased because of the quality issues of its products. This is an example of ________.Unsystematic risk If the Federal Reserve were to change from an expansionary to a contractionary monetary policy, this would be an example of ________.Systematic risk The S&P 500 index delivered a return of 10%, 15%, 15%, and -30% over four successive years. What is the arithmetic average annual return for four years?2.50% HKP Ind...

According to the monetarists, which of the following is true? - ANSWER-Instability in the money supply is the primary cause of economic instability. When the interest rate decreases, the opportunity cost of holding money - ANSWER-decreases, so the quantity of money demanded increases. If the Fed wanted to institute a more expansionary monetary policy, which of the following would it be most likely to do? - ANSWER-buy government bonds from the public When the Fed unexpectedly increases t...

ECS2602 ASSIGNMENT 3 ONLINE ASSESSMENTSEMESTER 2 POSSIBLE QUESTIONS AND SOLUTIONS Question 1 of 15 This question is based on the following diagram of an IS-LM model for an open economy A decrease in government spending causes ... A. a decrease in the demand for goods and the level of output; a decrease in the demand for money and the interest rate; a depreciation of the domestic currency and the trade balance deteriorates as exports increases. B. a decrease in the demand for goods and ...