Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please if i can have the answer for 15 and 16 15. An expansionary fiscal budget in which taxes are increased but government spending is

Please if i can have the answer for 15 and 16

image text in transcribed
15. An expansionary fiscal budget in which taxes are increased but government spending is increased by a larger amount, should cause aggregate: a. demand to initially shift inward then outward. b. supply and aggregate demand to both shift equally outward. c, supply to shift inward then outward. d. demand to shift outward. 16. Currently there is no reserve ratio requirement in Canada, the UK, New Zealand, Australia, Sweden and Hong Kong. In Australia it was removed in 1988. The August 2018 report of deposits at banks in Australia according to APRA records outstanding deposits of $2,184bn. If the reserve ratio was to be reinstated at 2.5%, the supply of money available through credit creation will = 4 multiplier = 2.5% a. / decrease from an unlimited supply to a cap of $87,360bn. 2 184 x 40= 87,360 b. increase to a cap of $87,360bn. c. not change at all. d. increase by 2.5% or $54.6bn

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing

Authors: Philip R Cateora

13th Edition

0073080063, 9780073080062

More Books

Students also viewed these Economics questions