1. Explain the phrase: the central bank accommodates the government's fiscal policy What does this accommodation mean?...
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Question:
1. Explain the phrase: "the central bank accommodates the government's fiscal policy" What does this accommodation mean?
2. Could there be a situation when both fiscal and monetary policies are weak? Provide and explain that scenario.
3. What is a good policy mix? What makes a good policy? What are its goals?
4. How can governments use money supply to change national output (GDP)? Explain, and or provide examples if necessary.
5. The central bank wanted to encourage investment from the private sector. How can it do so using its monetary policy tools? Explain, and or provide examples if necessary.
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