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.
27,001,771 questions answered
Popular Conversations
4/9 = ? / 63
Weegy: 7 is the answer. 63 ? ( 9 ) = 7 User: Find a common denominator between the two fractions. 1/2 and 5/6 ...
2/20/2017 8:56:40 AM| 4 Answers
Reduce the following fraction to lowest terms: 3/8 User: Find the ...
Weegy: The greatest common factor of the numbers 28 and 42 is 4. User: Reduce the following fractions to lowest ...
2/20/2017 8:43:07 AM| 3 Answers
Simplify 5 + 2{x - 4[3x + 7(2 - x)]}. User: Find the ...
Weegy: 48a^3 bc^2 / (3abc) = 16a^2c User: Given: X = r + 2, Y = 2r - 9, and Z = r 2 + 17r + 30. Simplify [X · Y - ...
2/20/2017 2:07:55 PM| 3 Answers
What happens when factors of production (resources) fall?
Weegy: if the factors of production: land, capital and labor fail, then it is likely that production will halt because ...
2/20/2017 4:09:26 PM| 3 Answers
Saying positive things to yourself in order to develop a more ...
Weegy: Positive attitude is the power that drives you to success. Developing and manifesting a positive attitude makes ...
2/20/2017 8:54:48 AM| 2 Answers
2 7/8 ÷ 1/4 = User: 4/3 ÷ 1/2 =
2/20/2017 9:09:55 AM| 2 Answers
__________ is the chance a business owner will lose the time and ...
Weegy: RISK is the chance a business owner will lose the time and money invested in a business that proves to be ...
2/20/2017 10:48:17 AM| 2 Answers
People who make judgments in lower federal courts are called
Weegy: Federal : of, relating to, or being a form of government in which a union of states recognizes the sovereignty ...
2/20/2017 11:49:25 AM| 2 Answers
Find the GCF of 56 and 46.
Weegy: The GCF of 56 and 46 is: 2. User: Find the GCF of -10c 2 d and 15cd 2. Weegy: GCF of -10c^2d and 15cd^2 is ...
2/20/2017 2:30:31 PM| 2 Answers
Which of the following is NOT a true statement about life on a ...
Weegy: All of the following were essential parts of the Southern economy by the mid-19th century EXCEPT: factories.
2/20/2017 3:15:33 AM| 1 Answers
Weegy Stuff
S
P
P
L
Points 355 [Total 1124] Ratings 2 Comments 335 Invitations 0 Offline
S
P
P
L
P
P
Points 322 [Total 2296] Ratings 1 Comments 312 Invitations 0 Offline
S
P
P
L
P
Points 226 [Total 1440] Ratings 0 Comments 226 Invitations 0 Offline
S
Points 30 [Total 30] Ratings 3 Comments 0 Invitations 0 Offline
S
Points 12 [Total 112] Ratings 1 Comments 2 Invitations 0 Offline
S
Points 12 [Total 22] Ratings 1 Comments 2 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
S
Points 5 [Total 5] Ratings 0 Comments 5 Invitations 0 Offline
S
Points 3 [Total 3] Ratings 0 Comments 3 Invitations 0 Offline
S
Points 2 [Total 2] Ratings 0 Comments 2 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.