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Fiscal and monetary policy can reduce unemployment with no negative side effects

ID: 2724071 • Letter: F

Question

Fiscal and monetary policy can reduce unemployment with no negative side effects. True False Ouring the financial crisis of 2007-2009 both fiscal and monetary policy turned more expansionary. True  False The increased use of PayPal will decrease the velocity of money, True False In response to the economic downturn, the federal government enacted a fiscal stimulus bill with funding in excess of $700 billion. True False Expansionary fiscal policy normally lowers interest rates. True False The structural deficit. is determined by established expenditure-transfer policies and tax rates and Is independent of the omen, level of GDP. True False The velocity of circulation is the number of times

Explanation / Answer

1. false

as more expansionary policies might result in long run huge inflation or huge debt burden on government

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Fiscal multipliers The blue line on the following graph shows the aggregate expe

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