What is expansionary fiscal policy? What is contractionary fiscal policy?
What will be an ideal response?
An expansionary fiscal policy is a decrease in taxes or an increase in government purchases intended to increase aggregate demand. A contractionary fiscal policy is an increase in taxes or a decrease in government purchases intended to decrease aggregate demand.
Economics
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If inflationary expectations on the part of the public increase, the trade-off between inflation and unemployment becomes worse
Indicate whether the statement is true or false
Economics
The reserve requirement is 0.20. What is the simple deposit multiplier?
A) 1 B) 5 C) 0.10 D) 100
Economics