This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Does expansionary fiscal policy directly increase the money supply? Isn't it true that the president ... (Read 91 times)

nmorano1

  • Hero Member
  • *****
  • Posts: 598
on: Jun 29, 2018
Does expansionary fiscal policy directly increase the money supply? Isn't it true that the president and Congress fight recessions by spending more money?
 
  What will be an ideal response?

Question 2

The Fed uses a core price index, one that excludes food and energy prices to measure inflation. It does so because
 
  A) food and energy have inelastic demand curves and consumers will buy them regardless of their price.
  B) food and energy prices have wide swings that are not related to the causes of general inflation.
  C) food and energy prices do not change all that much during the short run, so are irrelevant to the calculation of inflation.
  D) it wants to avoid the blame for high gasoline prices causing inflation.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kaylee05

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 29, 2018
Answer to Question 1

No, expansionary fiscal policy does not directly increase the money supply. The president and the Congress fight recessions by increasing spending, not the money supply, by either increasing government spending or cutting taxes to increase household disposable income and, therefore, consumption spending.

Answer to Question 2

B


nmorano1

  • Member
  • Posts: 598
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

cassie_ragen

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

blood supply blood supply
The Hepatic Portal Blood Supply The liver receives water, minerals, and nutrients from the digestive The Hepatic Portal Blood Supply The liver receives water, minerals, and nutrients from the digestive
A high-performance aftermarket air filter often can increase airflow into the engine for more ... A high-performance aftermarket air filter often can increase airflow into the engine for more ...
Increase in Surface Area by Mechanical Weathering Increase in Surface Area by Mechanical Weathering
The fiscal policy to counter an inflationary gap is a(n) The fiscal policy to counter an inflationary gap is a(n)
Key foreign policy agencies Key foreign policy agencies
Video: Carbohydrate digestion (brush border enzymes, end products) & Carb absorption (fructose, galactose)

For a complete list of videos, visit our video library