(a) Under the current pandemic, many governments provide cash transfer to citizens. A student

commented that it is not an expansionary fiscal policy because government expenditure

does not increase due to a transfer. Do you agree to this comment? Explain your answer.

(b) After the 2008 financial crisis, the monetary base in many major economies increases much

faster than various measures of money supply, meaning that the money multiplier has

decreased substantially. What factors theoretically can lead to a lower the money multiplier?

What happened that may have changed the factors you mentioned after the 2008 financial

crisis? Explain your answers.

(c) Quantitative Easing involves a massive purchase of financial assets from commercial banks

and financial institutions. Based on what you have learned in this class, explain how this

can help to boost economic growth.