Question
Determine whether the cases below are examples of either expansionary fiscal policy, contractionary fiscal policy, expansionary monetary policy, or contractionary monetary policy and explain why.
Determine whether the cases below are examples of either expansionary fiscal policy, contractionary fiscal policy, expansionary monetary policy, or contractionary monetary policy and explain why. Keep your explanations brief and concise.
1. The government's tax revenue increased by 10.3% from PhP 1,217,663 million in 2020 to PhP 1,343,454 million in 2021.
2. Decrease in fees for government transactions reduced non-tax revenue by -37.7% from PhP 235, 333 million in 2020.
3. Borrowing rates increased to respond to inflation exceeding the target.
4. The government's expenditures increased from PhP 2,013,728 million in 2020 to PhP 2,206,424 million in 2021.
5. Bangko Sentral ng Pilipinas reduces key policy rates from 5.4% to 4.7%. True or False. Write True if the answer is true. If the statement is False, provide an explanation as to why it is so. Keep your explanations brief and concise.
6. Fiscal policies tend to be automatic as a result of legislation.
7. Taxes always act as automatic stabilizers.
8. Contractionary monetary policies result to lower investment spending and higher incomes.
9. Inflation targeting is a mandate exclusive to the Bangko Sentral ng Pilipinas.
10. Expansionary monetary policies result to an increase in real GDP.
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