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Anon25 [30]
3 years ago
9

Why is coordination with monetary policy important to prevent lags in expansionary fiscal policy?

Business
2 answers:
Anastaziya [24]3 years ago
6 0

Answer:

Explanation:One of the limitations of monetary policy in countercyclical manner is the existence of time lags. It takes time for the monetary authority to realise the need for action and its recognition, and the taking of action and the effect of the action on economic activity.

Friedman defines “lag” as the timing relation between the resulting monetary series and resulting series of effects of monetary actions. According to him, monetary actions affect economic conditions only after a lag that is “both long and variable”. Friedman distinguishes among three basic lags: the recognition lag the administrative lag, and the operation lag.

liubo4ka [24]3 years ago
3 0

Answer: C . Without reducing or keeping short-term investor rates low, aggregate demand many not expand adequately.

Explanation:

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3 years ago
Japan's domestic customers in the camera industry generated a high home demand, which has helped stimulate the innovation of cam
alina1380 [7]

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<u><em>Local demand conditions</em></u>.

Explanation:

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3 years ago
Currently, a​ government's budget is balanced. The marginal propensity to consume is 0.80. The government has determined that ea
igor_vitrenko [27]

The amount of ​$25.00 billion will be the private investment spending that each​ $10 billion increase in government spending will crowd​ out.

<h3>What is the explanation on government expenditure?</h3>

When the government expenditure increased by​ $1 billion, the planned investment expenditure will falls by ​​$0.20 billion., hence, for each​ $1 billion increase in government​ spending, there is a net change in intial spending​ of $0.2 billion

Also, the aggregate demand curve will shift to the right by the net change in spending multiplied by the​ multiplier, which equals 1- MPC.

Hence, the net increase in AD due to the​ $1 billion increase in government expenditure is equals what is known as the net multiplier.

Therefore, the amount of ​$25.00 billion will be the private investment spending that each​ $10 billion increase in government spending will crowd​ out.

Read more about government expenditure

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The private key of the certificate holder has been breached and conditions may contribute to the withdrawal of a credential by a certification authority.

A certificate authority, sometimes also linked to as a qualification authority, is a service provider or institution that acts by issuing electronic documents to justify the identifications of institutions and bind them to encryption keys.

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