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1.) What is the difference between monetary policy and fiscal policy? Define monetary policy and monetary theory.

2.) What, if anything, happens to i in the liquidity preference framework when bonds become risky?

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Darryn D'Souza
Darryn D'SouzaLv10
28 Sep 2019

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Related questions

1.what is one long-run implication for monetary policy shared by both Quantity Theory of Money and the Natural Rate Hypothesis??

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2."When we are in a liquidity trap, monetary policy is weak and fiscal policy is powerful." Ture or False? Why?

As you have learned in Unit 8 (this week), monetary and fiscal policy play important roles in economic stimulation and or stabilization. In this regard:

 

a. When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy? 

b. When is it inappropriate to use monetary and fiscal policy to stimulate or stabilize the economy?

c. What specific fiscal policy tools would you use to stimulate aggregate demand and how?

d. What specific monetary policy tools would you use to stimulate aggregate demand and how?

e. What is your conclusion, should policymakers use the monetary and or fiscal policy to stimulate aggregate demand? Explain briefly.

What is the difference between Monetary and Fiscal Policy?

Give Arguments for and against the policy to stabilize the economy.

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