Expansionary monetary policy and Expansionary fiscal policy

Related BrainMass Solutions

• Impact of fiscal and monetary policies on the exchange rate

  Thus expansionary monetary and expansionary fiscal policy lead to different outcomes. An expansionary monetary policy causes a reduction in interest rates and lead to a depreciation of the domestic currency.

• Policy Mix in Goods and Money Markets

  Mix: Expansionary monetary policy, no change in fiscal policy. Aggregate output increases, means the policy is expansionary fiscal policy.

• Impact on equilibrium income and the interest rate

  Thus, monetary policy is a policy which determines the supply of money and cost of money. Expansionary fiscal policy involves increasing the liquidity of money.

• Discuss expansionary and contractionary monetary policies.

  As with the expansionary fiscal policy example above this increases output, lowers unemployment, and creates economic growth. when the economy is sluggish the Fed tends to pursue expansionary monetary policy.

• macroeconomic status in America

  To stimulate the growth rate the government must use an expansionary fiscal policy and should use the monetary policy to increase the liquidity in the system.

• countries have flexible exchange rates and highly mobile capital

  284199 countries have flexible exchange rates and highly mobile capital A.) What are the effects of one country pursuing expansionary fiscal policy and tight monetary policy? B.)

• Macroeconomic Issues

  What are the advantages and disadvantages of using an expansionary fiscal policy in a recession (That is, compared to using monetary policy)? a.

• Effects of monetary and fiscal policy on inflation

  What is the final impact of expansionary fiscal policy on the price-level and real output? 5.What are the impacts of a tight monetary policy on the price-level and real output? When would a tight monetary policy be appropriate? 6.

• AD/AS as a framework for fiscal and monetary policies

  Identify and describe changes in the AS-AD graph above, that would result from the implementation of contractionary fiscal policy. Both monetary and fiscal policy are AD shifting policies.