Solution-What kind of mix of monetary and fiscal policies

What kind of mix of monetary and fiscal policies

Assignment Help Accounting Basics

Reference no: EM13981559

1. Show how the IS curve and the LM curve can be shifted to get an increase in output without a change in interest rates. What kind of mix of monetary and fiscal policies is needed to do this? How should we shift the IS and LM curves if we wanted to get a reduction in interest rates while holding output constant.

2. Assume we are at E1 in equilibrium. a fiscal expansion shift the IS to IS2. We reach equilibrium at E where r and GDP are both higher. If we want r to stay constant, we can use a monetary expansion policy that shifts out LM to LM2. This takes us to E2, where GDP is higher but r is same as at E1(r).

Reference no: EM13981559

Questions Cloud

Assess the value of total quality management : Assess the value of total quality management (TQM) to health care systems. Include two (2) ways in which implementing TQM would be beneficial to a health care organization

In the presence of foreign repercussions : In the presence of “foreign repercussions,” why is the multiplier for an autonomous increase in home country exports smaller than the multiplier for an autonomous increase in home country investment? Explain in economic terms.

Suppose that autonomous consumption increases : Suppose that autonomous consumption increases but that, unlike the situation in the simple Keynesian model of this chapter, some of this autonomous consumption increase is spent on imports (say an amount equal to MPM times the autonomous consumption ..

Country has a current account deficit : If a country has a current account deficit, this is often referred to as a situation where the country is “spending beyond its means.” What does this phrase mean in terms of the simple Keynesian model? Does the existence of the current account defici..

What kind of mix of monetary and fiscal policies : What kind of mix of monetary and fiscal policies is needed to do this? How should we shift the IS and LM curves if we wanted to get a reduction in interest rates while holding output constant.

Explain how depreciation of the dollar against the peso : Assume a two-country world containing country A (whose currency is the dollar) and country B (whose currency is the peso). In this context, and using relevant graphs, explain how a depreciation of the dollar against the peso (for example, a 10% depre..

Differences between males and females : Besides the obvious sexual organs that are different between the sexes, name 3-5 other major bodily differences between males and females. Why the difference?

Computer-based multiattribute decision program : If possible, use a computer-based multiattribute decision program to do this problem.

Under either gold standard or a pegged-rate system : Under either a gold standard or a pegged-rate system, what changes in the money supply are necessary in order for effective adjustment to take place? Why are these changes necessary?

User Account

All Pages

What kind of mix of monetary and fiscal policies

Reference no: EM13981559

Reference no: EM13981559

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT