Contractionary fiscal policy includes quizlet
[DOC File]Chapter ending questions:
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Answer: Total external debt includes the stock of debt owed to nonresident govenrments, businesses, and institutions and repayable in foreign currency, goods, or services. Total debt includes short-term debt, long-term debt, and use of IMF credit. Debt service is the interest and principal payments due in a given year on long-term debt.
[DOC File]Multiple choice questions
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c. use fiscal policy to influence GDP. d. loan money to most of LDC commercial banks. 4. _____ states that as real GNP per capita rises, people demand relatively more social goods and relatively fewer private goods. a. Incomes policy. b. Moral hazard. c. Wagner's law. d. Fiscal policy. 5.
[DOC File]Answers to even-numbered questions
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Fiscal policy only works (or appears to) when it is backed up by monetary policy: in which case, it is better to focus on monetary policy. But even here, there are time lags. It is much better, therefore, to give up short-term demand management and instead set monetary rules (targets) so as to create a more stable long-term environment.
[DOCX File]Explanation - gimmenotes
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A contractionary fiscal policy, for instance a decrease in government spending, causes a lower deficit. In the IS-LM model the IS curve shifts to the left and the level of output falls. By implementing an expansionary monetary policy through increasing the money supply, the LM curve shifts to the right and the level of output returns to its ...
[DOC File]chamaeleons.com
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Fall 2009. ECO401- Economics (Session - 4) Time: 120 min . Marks: 87. Question No: 1 ( Marks: 1 ) - Please choose one. If the quantity demanded of a product is greater than the qu
[DOC File]Chapter 7: Economic Growth, Business Cycles, Unemployment ...
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c. Running more contractionary fiscal policy and expansionary monetary policy would reduce the interest rate and thereby push down the exchange rate making the country more competitive, while maintaining a constant domestic macro policy. 4. a. We would suggest that the IMF require both a contractionary monetary and fiscal policy.
[DOC File]CHAPTER 17: TEST BANK
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contractionary monetary policy. expansionary fiscal policy. contractionary fiscal policy. Capital flight occurs when funds in LDCs are: used to purchase luxury goods. used to invest in factories and equipment. used to invest in foreign countries. saved at home rather than in banks. Economic reform in less developed countries typically includes:
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