Author Question: Why is it difficult to implement fiscal policies? What will be an ideal ... (Read 32 times)

tsand2

  • Hero Member
  • *****
  • Posts: 520
Why is it difficult to implement fiscal policies?
 
  What will be an ideal response?

Question 2

When a bank buys a bond from the Fed
 
  A) its liabilities decrease. B) its liabilities increase.
  C) its reserves initially increase. D) its reserves initially decrease.


prumorgan

  • Sr. Member
  • ****
  • Posts: 326
Answer to Question 1

One reason why fiscal policies are difficult to implement is the presence of lags, which arise due to the time involved in recognizing and responding to economic changes and the time needed for the policies to operate. A second reason is economists have incomplete information about all aspects of an economy, which limits their abilities to accurately predict economic responses to fiscal policies.

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

For a complete list of videos, visit our video library