You have new items in your feed. Click to view.
Question and answer
using expansionary policies to combat a recession would?
Both expansionary monetary policy and expansionary fiscal policy are being used to counter the recession. Expansionary monetary policy is basically just lending more money to people, [ people borrow that money and spend it creating demand in the process. The United States has been using expansionary monetary policy for about 20 years straight now which has directly lead to massive increases in
the levels of debt in the economy. Debt levels are so high now that no one can actually borrow any more so monetary policy has stopped working. Monetary policy is at the most expansionary setting possible right now and it is having effectively no expansionary impact on the economy as a consequence of excessive debt levels. Fiscal policy thus is the only option left available to actually rectify the situation, basically all you are doing is spending money through the government thus creating demand in the economy. Measures being taken include tax cuts (which I personally disagree with under the circumstances as a greater demand impact could be achieved by spending elsewhere like unemployment benefits without the cost of reducing revenue, increased unemployment benefits actually increases govt revenue), other measures being taken include infrastructure spending and extending the length of unemployment benefits. This is basically a Keynesian approach. Keynesian economics revolves around the concept of 'aggregate demand' the government can increase the amount of aggregate demand through government spending. A Keynesian approach is fundamentally the right way to go under the circumstances that exist as this crisis is basically a crisis of demand. ]
Expert answered|badeeani|Points 10|
Question
Asked 9/6/2013 6:14:13 PM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
27,200,997 questions answered
Popular Conversations
In 594 B.C. ______ was chosen as an Athenian statesman with ...
Weegy: In 594 B.C., Solon was chosen as an Athenian statesman with reformation powers. User: ______ were ...
3/22/2017 1:13:29 AM| 2 Answers
Correct the sentence by selecting the proper pronoun usage. The coach ...
Weegy: We girls and He is the correct pronoun usage. Source : Just asked a professional.
3/22/2017 9:23:57 AM| 2 Answers
What did the United States do in response to Japan's invasion of ...
Weegy: The capital of Japan is TOKYO. User: What did the United States do in response to Japan's invasion of ...
3/22/2017 10:29:18 AM| 2 Answers
integrity base
Weegy: Integrity is the quality of being honest and having strong moral principles; moral uprightness. User: what ...
3/22/2017 3:47:32 PM| 2 Answers
If a person living in one state sues a person living in another state ...
Weegy: If a person living in one state sues a person living in another state for a sum exceeding $75,000, they can ...
3/22/2017 4:35:33 PM| 2 Answers
When was the Constitution made?
Weegy: A constitution is a set of fundamental principles or established precedents according to which a state or other ...
3/22/2017 6:16:13 PM| 2 Answers
Weegy Stuff
S
Points 526 [Total 627] Ratings 0 Comments 526 Invitations 0 Offline
S
Points 477 [Total 477] Ratings 0 Comments 477 Invitations 0 Offline
S
P
P
L
P
Points 218 [Total 1536] Ratings 1 Comments 208 Invitations 0 Offline
S
R
Points 205 [Total 305] Ratings 1 Comments 145 Invitations 5 Offline
S
P
P
L
P
P
Points 151 [Total 1603] Ratings 1 Comments 141 Invitations 0 Offline
S
Points 30 [Total 40] Ratings 3 Comments 0 Invitations 0 Offline
S
Points 13 [Total 13] Ratings 1 Comments 3 Invitations 0 Offline
S
Points 13 [Total 13] Ratings 1 Comments 3 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 0 Comments 0 Invitations 1 Offline
S
Points 10 [Total 10] Ratings 0 Comments 0 Invitations 1 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.