Floating exchange rate-what is the impact of fiscal policy

Assignment Help Business Economics

Reference no: EM13833510

Sweden has a floating exchange rate . It is considered that the output is lower than the potential and there is disinflation which sometimes leads to deflation.

a. Describe the situation using the IS-LM and AD -AS (SAS MAS) model.

b. What can finance minister do at this point to stimulate the economy? What is the impact of fiscal policy? Analyze using macroeconomic models that you have learned during the jars.

c. What the Riksbank can do in this mode to stimulate the economy? What is the impact of monetary policy? Analyze using macroeconomic models that you have learned during the jars.

d. What will happen if both Pennings and fiscal policies implemented simultaneously. Analyze using macroeconomic models that you have learned during the jars.

Reference no: EM13833510

Questions Cloud

What are the advantages and disadvantages of currency union : What are the advantages and disadvantages of a currency union? Describe the theory of optimum currency areas?

The best strategy for airlines is to offer wi-fi : 1. Do you think the best strategy for airlines is to offer Wi-Fi service at the lowest price (or free) or the best quality at a higher price? Please explain your reasoning.2. Like its connectivity, pricing for in-flight Wi-Fi varies wildly. Would you..

Analyse by using your knowledge of economics : It seems that it will be the government shifts. The next government with the Social Democrats in the lead wants to operate expansive fiscal policy. A journalist asks to social demokreterna this: you were commissioned to analyze the situation and prov..

Did one firm pay cash to acquire the other firm : Pick a large merger or acquisition that occurred sometime between 1/2005 and 9/2014 in an industry that at least one of your group members (groups are assigned the first day of class) is familiar with (this does not need to be limited to U.S. corpora..

Floating exchange rate-what is the impact of fiscal policy : Sweden has a floating exchange rate . It is considered that the output is lower than the potential and there is disinflation which sometimes leads to deflation. Describe the situation using the IS-LM and AD -AS (SAS MAS) model. What can finance minis..

Focuses on how the management practices of planning : Assignment focuses on how the management practices of planning, leading, organizing, staffing, and controlling are implemented in your workplace. If you are not currently working, you may use a previous employer. In this assignment, you must:Analyze ..

A business in a monopolistically competitive industry : A business in a monopolistically competitive industry...

Definingand understanding the elements of a group culture : Definingand understanding the elements of a group culture is essential to forging aprofessional identity either online or in person. These elements are importantbecause they reflect how professionals interact, whether online or in person.

Determine the quantity demanded-the quantity supplied : Suppose demand and supply are given by Qd = 100 - P and Qs = 2P + 25. 2. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $ 40 is imposed in this market.

User Account

All Pages