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.
21,096,354 questions answered
Popular Conversations
Simplify 2(x - 4) + 7(x + 2). User: Simplify 2(x - 4) + 7(x + 2). ...
Weegy: 3(4x + 6) - 9x = 12x + 18 - 9x; = 3x + 18 User: Simplify 8 - (-5) - 4(-7). Weegy: 8 - (-5) - 4(-7) = 8 + 5 ...
5/27/2015 3:01:03 PM| 4 Answers
Simplify 11(2x + 3). 11x + 5 22x + 3 22x + 33 User: Simplify -3xy 3 ...
Weegy: The answer is (-3xy 3). User: Simplify 2x + x. User: Simplify 8(3 - 2x). Weegy: 10(2x + 3) - 20 = ...
5/27/2015 9:20:06 AM| 3 Answers
Simplify 8(3 - 2x).
Weegy: 10(2x + 3) - 20 = (10)(2x)+(10)(3) - 20 = 20x + 30 - 20 = 20x + 10 User: Simplify -2[9 - (x + 7)]. User: ...
5/27/2015 9:22:24 AM| 3 Answers
Select all of the terms that are "like." xy2 2xy x2 -xy 2x2y xy
Weegy: 2xy, -xy, and xy are "like" terms. User: Simplify -4(N + 9). User: Simplify -4(N + 9). User: Simplify ...
5/27/2015 9:17:54 AM| 2 Answers
Simplify (5b)(-3a). -35ab -15ab 2ab
Weegy: (5b)(-3a) = -15ab User: Simplify 9 - {x - (7 + x)}. User: What is the expression for "the difference ...
5/27/2015 9:27:00 AM| 2 Answers
Find the value of 21 - 18 ÷ 3 · 2. User: Simplify ...
Weegy: 6(-5)= -30 User: Simplify 6r · s · 4rt. 10rst 10r2st 24r2st Weegy: Your answer is C. 24r2st. User: ...
5/27/2015 9:35:13 AM| 2 Answers
Acid rain could be referred to as a _____________ phenomenon. a. ...
Weegy: Acid rain could be referred to as a natural phenomenon. User: When geographers observe moraines, they can ...
5/27/2015 11:21:09 AM| 2 Answers
What does glasnost ...
5/27/2015 12:04:08 PM| 2 Answers
Weegy Stuff
S
Points 759 [Total 767]| Ratings 1| Comments 749| Invitations 0|Offline
S
L
Points 706 [Total 1236]| Ratings 2| Comments 686| Invitations 0|Offline
S
1
Points 586 [Total 978]| Ratings 3| Comments 556| Invitations 0|Online
S
L
P
Points 429 [Total 2906]| Ratings 1| Comments 419| Invitations 0|Offline
S
P
C
L
P
L
1
P
P
1
P
1
Points 248 [Total 8994]| Ratings 0| Comments 248| Invitations 0|Offline
S
Points 161 [Total 181]| Ratings 0| Comments 161| Invitations 0|Offline
S
1
L
L
Points 84 [Total 8267]| Ratings 0| Comments 84| Invitations 0|Offline
S
L
1
R
Points 68 [Total 1355]| Ratings 0| Comments 68| Invitations 0|Offline
S
L
Points 56 [Total 3810]| Ratings 2| Comments 36| Invitations 0|Offline
S
Points 14 [Total 14]| Ratings 0| Comments 14| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.