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APE U5 review 6 Flashcards | StudBud

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If a government wishes to deficit spend without crowding out, spending should be coupled with:

Monetary policy is generally preferred to Fiscal policy for all of the following EXCEPT:

APE U5 review 6

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1
Monetary policy is generally preferred to Fiscal policy for all of the following EXCEPT:
Those in control of monetary policy rarely face elections
MP does not increase government debt
MP has greater impact than changes in gov spending
FP often takes longer to be implemented than MP
2
If a government wishes to deficit spend without crowding out, spending should be coupled with:
Borrowing from outside of the country
An increase in the Federal Funds Rate
An expansion of the money supply
A decrease in taxes
3
Demand-side policy focuses on ___ while Supply side policy focuses on ___.
Short-term fluctuations, long-term growth
Foreign trade, protectionism
Businesses, individuals
Taxes and government spending, monetary policy
4
The Laffer curve states that as ___ increase, government revenues tend to ____.
a.Interest rates, decrease
Tax rates, decrease
Tax rates, increase
Interest rates, increase