Econ 545 Week 6 Dq 1 Fiscal Policy

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ECON 545 Week 6 DQ 1 Fiscal Policy

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Download answer at http://www.examtutorials.com/course/econ-545-week-6-dq-1-fiscal-policy/
<b>Fiscal Policy (graded) </b><b>What fiscal policies are required to fight unemployment? Which ones are required to fight inflation? What are some of the downside risks and potential problems involved when using fiscal policy?</b><b>What fiscal policies are required to fight unemployment? Which ones are required to fight inflation? What are some of the downside risks and potential problems involved when using fiscal policy?</b>The government uses fiscal policy to adjust the level of spending in order to monitor and influence the country’s economy. “Fiscal policies involves adjusting government spending on goods and services as well as taxes” (pg 523) Lowering of taxes might help in decreasing unemployment which also see an increase in spending which in turn helps stimulate the economy.To fight unemployment the Fed either lowers interest rates to spur companies in to borrowing money in order to cause growth or the government takes the direct approach and creates the jobs directly such as the ones that where seen in the "New Deal." Inflation is battled by raising interest rates to suppress corporate growth and reduce the amount of currency in circulation. Lowering interest rates causes inflation and increases the amount of currency in the open market which drives the value of the dollar down.
http://www.examtutorials.com/course/econ-545-week-6-dq-1-fiscal-policy/Download answer at https://www.examtutorials.com/course/econ-545-week-6-dq-1-fiscal-policy/
<b>Fiscal Policy (graded) </b><b>What fiscal policies are required to fight unemployment? Which ones are required to fight inflation? What are some of the downside risks and potential problems involved when using fiscal policy?</b><b>What fiscal policies are required to fight unemployment? Which ones are required to fight inflation? What are some of the downside risks and potential problems involved when using fiscal policy?</b>The government uses fiscal policy to adjust the level of spending in order to monitor and influence the country’s economy. “Fiscal policies involves adjusting government spending on goods and services as well as taxes” (pg 523) Lowering of taxes might help in decreasing unemployment which also see an increase in spending which in turn helps stimulate the economy.To fight unemployment the Fed either lowers interest rates to spur companies in to borrowing money in order to cause growth or the government takes the direct approach and creates the jobs directly such as the ones that where seen in the "New Deal." Inflation is battled by raising interest rates to suppress corporate growth and reduce the amount of currency in circulation. Lowering interest rates causes inflation and increases the amount of currency in the open market which drives the value of the dollar down.
https://www.examtutorials.com/course/econ-545-week-6-dq-1-fiscal-policy/

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