You are watching: Which of the following are examples of automatic stabilizers? check all that apply.
1.The Fed deserve to properly respond to excessive pessimism by broadening the money supply and also lowering interemainder rates.2.Shifts in accumulation demand also are often the result of waves of pessimism or optimism among consumers and also businesses.
Which of the complying with statements about the controversy over stabilization policy are correct? Check all that use.
1.Advocates of active stabilization policy think that the federal government can readjust financial and also fiscal policy to counteract waves of extreme optimism and pessimism among consumers and businesses.2.Opponents of active stabilization plan believe that considerable time lags in both fiscal and also financial policy often exacerbate financial fluctuations.
After the rise in the price level, the amount of money demanded at the initial interemainder price of 9% will be_______t than the quantity of money gave by the Fed at this interest rate. People will attempt to___________ their money holdings. In order to execute so, human being will_________ bonds and various other interest-bearing assets, and bond issuers will find that ________________ interemainder prices until the money sector reaches its new equilibrium at an interemainder rate of________
The readjust in the interemainder rate that you discovered formerly will certainly cause residential and service investment spfinishing to______ , leading to__________ in the amount of output demanded in the economy.
Suppose the Fed announces that it is increasing its targain interest price by 75 basis points, or 0.75 percent allude. To carry out this, the Fed will usage open-industry operations to_____________ the____________money by ____________ the public.
Suppose the adhering to graph mirrors the accumulation demand curve for this economic situation. The Fed"s policy of targeting a higher interemainder rate will__________ the price of borrowing, resulting in residential and business investment spfinishing to____________and also the amount of output demanded to _________at each price level.
Consider a theoretical closed economic situation in which households spfinish $0.60 of each additional dollar they earn and also conserve the remaining $0.40.The marginal propensity to consume (MPC) for this economic climate is________ , and also the spending multiplier for this economic situation is__________
Suppose the federal government in this economic climate decides to boost federal government purchases by __________The increase in federal government purchases will result in an increase in income, generating an initial readjust in consumption equal to_____________ This rises revenue yet aget, causing a 2nd change in intake equal to______________The full change in demand resulting from the initial adjust in federal government spending is$1 trillion Correct .
Suppose that for each one-percentage-suggest increase in the interest price, the level of investment spending declines by $0.5 billion. The adjust in the interest rate (according to the change you made to the money market in the previous scenario) therefore causes the level of investment spending of________ by___________
After the multiplier impact is accounted for, the readjust in investment spfinishing will certainly cause the quantity of output demanded to_____________ by$__________ at each price level. The influence of a rise in federal government purchases on the interemainder price and also the level of investment spending is known as the____________impact.
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Suppose the government decides to intervene to lug the economic situation earlier to the natural level of output by making use of _________policy
Suppose that in March the federal government undertakes the form of plan that is vital to lug the economic situation ago to the organic level of output provided in the previous scenario. In July 2020, consumer confidence decreases, leading to a decrease in consumer spfinishing. Due to the fact that of the________associated with implementing monetary and fiscal policy, the influence of the government"s new policy will likely________________________ when the impacts of the plan are fully realized.
If the price of Bluetooth headsets rises 12 percent during a year as soon as the level of average prices rises 13 percent, the loved one price of Bluetooth headsets