Reference no: EM131004792
"Neither monetary policy nor fiscal policy alone can be effective in formulating sound economic policies for recession." Do you agree or disagree?
The question seems to be suggesting that both should be used at the same time. Can you find reasons to support this claim the question seems to be putting forward?
Both monetary and fiscal policy have the same goals and targets: They are full potential growth rate in GDP, stable prices, and full employment.
But the way they are implemented, and tools used to achieve these goals are different.
Historically both monetary and fiscal authorities have learned to use these tools in a complementary fashion, otherwise they may work against each other.
Typically Fiscal policy is slower to implement but after it has been implemented it is fast to react and effect the economy.
On the other hand monetary policy is fast to implement but it takes longer, sometimes much longer, to affect the economy.
Explain why that might be?
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What is the actual IRR for this investment
: Leo supervises operations for a small manufacturing company. The company wants to expand, so upon Leo's recommendation, it purchased a new robotic assembly system for $200,000. Leo argued that he had made a good decision because it saved the company ..
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Choice of one of the three alternatives
: Your grandfather has offered you a choice of one of the three following alternatives: $5,000 now; $1000 a year for eight years; or $12,000 at the end of eight years. Assuming you could earn 11 percent annually, which alternative should you choose? If..
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Calculate the accounting profit for pottery firm
: Gomez runs a small pottery firm. He hires one helper at $14,500 per year, pays annual rent of $7,500 for his shop, and spends $18,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) t..
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Describes how the mustard market is affected
: Consider the market for mustard, which is a complement to hot dogs. Suppose the price of pork, an input in the production of hot dogs decreases. Which of the following accurately describes how the mustard market is affected?
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Neither monetary policy nor fiscal policy
: "Neither monetary policy nor fiscal policy alone can be effective in formulating sound economic policies for recession." Do you agree or disagree? The question seems to be suggesting that both should be used at the same time. Can you find reasons to ..
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What is effective rate on bank loan-borrow money to discount
: Harper Engine Company needs $600,000 to take a cash discount of 1.5/10, net 60. Abanker will loan the money for 50 daya at an interest cost of $12,100. What is the effective rate on the bank loan? How much would it cost (in perecentage terms) if Harp..
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Make an initial investment at the beginning of first year
: You need $23,956 at the end of nine years, and your only investment outlet is a 7 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year. What..
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More attractive by using simple arithmetic in a static world
: Given 2 (two-period) Jobs with the following cost and flows. Job A: will cost $50,000 in year 1 and will yield $84,000 in year 2 Job B: will cost $80,000 in year 1 and will yield $120,000 in year 2 Dwight and James are looking at these 2 jobs and wil..
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Calculate the consumers demand functions for good
: A consumer has the utility function U(x,y) = x^αy^β, where x≥0 and y≥0 represent her consumption of goods X and Y, and α>0 and β>0 are exogenous parameters. Calculate the consumer’s demand functions for good X and (separately) good Y. These demands m..
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