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Homework answers / question archive / Macroeconomic policy For each action in the list below, categorize the policies as either expansionary (boosting the economy) or contractionary (shrinking the economy) and as either monetary or fiscal

Macroeconomic policy For each action in the list below, categorize the policies as either expansionary (boosting the economy) or contractionary (shrinking the economy) and as either monetary or fiscal

Economics

Macroeconomic policy For each action in the list below, categorize the policies as either expansionary (boosting the economy) or contractionary (shrinking the economy) and as either monetary or fiscal. Some of the items in the list below are not correct and do not belong in any of the categories, None of the items in the list below belong in more than one of the categories 
1. The Fed cuts the Fed funds rate 2. The government raises income tax rates 3. The Fed sells bonds in the open market 4 The government raises interest rates 5 The Fed increases its spending 
6. The Fed increases the interest rate paid on reserve NI This is expansionary monetary policy fiscal pri i cy 7. The government increases its spending This is expansionary  This is contractionary monetary policy fiscal policy 8. The Fed increases the discount rate This is contractionary  This is not correct and does not belong in any category above 9. The Fed buys US government securities in the open market 
10. The Fed cuts corporate tax rates 

 

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