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

Author Question: Other things constant, what is the outcome of expansionary fiscal policies on employment, inflation, ... (Read 100 times)

imowrer

  • Hero Member
  • *****
  • Posts: 514
on: Jun 30, 2018
Other things constant, what is the outcome of expansionary fiscal policies on employment, inflation, real output, and deficits in the short-run?

Question 2

Suppose a bank has 850 million in vault cash and a deposit in the Fed of 100 million. If the bank's required reserves equal 500 million, then the bank has excess reserves of:
 a. 100 million.
  b. 350 million.
  c. 400 million.
  d. 450 million.
  e. 500 million.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tuwy

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jun 30, 2018
Answer to Question 1

The expansionary policy will lead to an increase in AD which will lead to an increase in real output, a decrease in unemployment, and an increase in inflation. Ceteris paribus, the increase in government purchases and/or decrease in taxes will lead to an increase in the deficit.

Answer to Question 2

d


imowrer

  • Member
  • Posts: 514
Reply 2 on: Jun 30, 2018
Excellent

adammoses97

  • Member
  • Posts: 337
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Average Hourly Earnings of U.S. Workers in Current and Constant Dollars Average Hourly Earnings of U.S. Workers in Current and Constant Dollars
Employment Status of Food-Insecure Households Employment Status of Food-Insecure Households
A ship is being pulled through a harbor at constant velocity by two tugboats as shown in the ... A ship is being pulled through a harbor at constant velocity by two tugboats as shown in the ...
Write equilibrium constant expressions for the following reactions in terms of concentration: Write equilibrium constant expressions for the following reactions in terms of concentration:
Exercise about living things Exercise about living things
Living things vs non living things Living things vs non living things
Video: Neuron Type Animation

For a complete list of videos, visit our video library