Which of the following would not be considered a supply side policy?
a. changing the interest rate
b. infrastructure spending
c. cuts to the tax rate
d. eliminating regulations
Answer
Option a
a. changing the interest rate
change in interest rate is not a supply-side policy as it is a demand-side policy.
the supply-side policy is used to increase the aggregate supply by promoting the industry
Which of the following would not be considered a supply side policy? a. changing the interest...
165 9. Which of the following should not be considered to be a supply side policy? a. a decrease in the deficit b. a reduction of the tax on consumption c. a middle class tax cut d. none of the above 10. Whenever the aggregate supply curve shifts, the short rur aggregate supply curve also shifts. However, it is not the case that whenever the short run aggregate supply curve shifts, the long run aggregate supply curve also shifts. a....
Which of the following would be an example of passive policy making? A. raising the money supply when the unemployment rate increases. B. government spending decreases intended to decrease real Gross Domestic Product (GDP) C. establishing a system of automatic tax stabilizers D. marginal rate tax cuts intended to increase real Gross Domestic Product (GDP)
Examples of fiscal policy do not include: A.reducing the interest rate by increasing the money supply. B. Government spending on infrastructure to stimulate aggregate demand. C. A $1,500 per family tax rebate D. An economic stimulus package
f contractionary monetary policy is used, then which of the following would be most likely to enhance the effect of the contractionary policy on aggregate demand? Interest rates would increase, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate depreciation and a rise in net exports. Interest rates would increase, leading to...
Suppose the Fed wanted to engage in an expansionary monetary policy. Which of the following should it do? a. Increase the reserve requirement ratio. b. Buy bonds on the open market. c. Sell bonds on the open market. d. Lower taxes. e. Increase the discount rate. The interest rate at which banks can borrow funds from the Fed is known as… a. the federal funds rate. b. the discount rate. c. the prime rate. d. the real interest rate. e....
Which of the following actions DOES NOT belong to fiscal policy? A) Lower interest rate B) Increase government spending C) Increase debt ceiling D) Decrease tax rate
Which of the following diagrams shows what supply-side fiscal
policy initiatives try to do to the long-run aggregate supply
curve?
a
b
c
d
e
Question 54 Supply-side fiscal policy focuses on: increases in government spending that lead to multiple increases in equilibrium income and output. decreases in government spending and taxing in order to decrease the impact of government on the supply-side of the economy. decreases in marginal tax rates designed to increase incentives to work and produce. increases in tax rates designed to increase government revenue, which will enable government to supply more social programs.
Which of the following is a monetary policy intended to rein in inflation? a. Reduce interest rates to increase investment spending b. Increase the money supply to shift the aggregate demand curve rightward c. Reduce the interest paid on banks' reserves d. Decrease the money supply to shift the aggregate demand curve leftward
Which of the following is not considered an automatic stabilizer? A. food stamp program for people with low incomes B. welfare program for families with dependent children C. Medicaid, a health program for the poor D. financial assistance for disabled people E. unemployment programs that pay benefits to those who lose their jobs If the MPC is 0.75, then the spending multiplier is: A. -o.57 B. 0.57 C. 4.0 D. -4.0 Which of the following Federal Reserve policy tools is...