Under the conditions of a small open economy, the impact of domestic fiscal expansion is 30

Updated on military 2024-05-26
13 answers
  1. Anonymous users2024-02-11

    In the open economy of a small country, the real interest rate is given by the equilibrium interest rate of the world capital market and does not rise with fiscal expansion, so that income must also remain constant in order to keep the money market in equilibrium. When an expansionary fiscal policy is implemented, the IS line shifts to the right, while the LM line is a perpendicular line, the abscissa is Y, and the ordinate is the real interest rate, and the intersection point moves to the upper right, that is, the real interest rate rises. I still insist on A. Hope.

  2. Anonymous users2024-02-10

    According to Mundell.

    The Fleming model, domestic expansionary fiscal policy.

    It will cause domestic interest rates to fall, domestic interest rates to fall, capital outflow from the country, investors to sell their own currency in the foreign exchange market, and increase the supply of the local currency and depreciate the currency. Exports increased.

    Hence d. Actually, my analysis is complicated.

  3. Anonymous users2024-02-09

    Of course, choose B, the interest rate of the small country's open economy remains unchanged, the nominal exchange rate of fiscal expansion rises, and net exports fall. The ordinate of the Mundell-Fleming model is the nominal exchange rate, and it will not be impossible not to talk nonsense about whether it is good or not.

  4. Anonymous users2024-02-08

    In a small open economy, the interest rate r in the economy is determined by the world interest rate r*, and the impact of small countries on the world economy is negligible, and how much you want to borrow in the financial market will not affect the world interest rate, so d must be wrong! C is also wrong The LM curve is vertical, and it is true that the expansionary fiscal policy causes the LM curve to shift to the right, and the exchange rate is declining on the graph, so A is also wrong. Then the net export nx is negatively correlated with e, when e falls, nx goes up, and the net export increases, so b is also wrong......It feels like you're getting it wrong.

  5. Anonymous users2024-02-07

    The impact of expansionary fiscal policy on the economy is (a) alleviating the depression, but increasing **debt).

    The fiscal policy of all exploiting class states is aimed at maintaining their supra-economic relations of exploitation. When their rulers are in the ascending period, they are often able to conform to the trend of historical development to a certain extent and adopt fiscal policies that are more suitable for the development of productive forces.

    However, with the intensification of various social contradictions, the fiscal policy will become more and more unable to meet the requirements of the development of productive forces, thus hindering social and economic development.

  6. Anonymous users2024-02-06

    Option A eases the economic depression and increases the financial burden, and the expansionary fiscal policy needs to expand spending, create jobs, and promote economic growth, and expanding spending will increase the deficit.

  7. Anonymous users2024-02-05

    Expansionary fiscal policy is to increase spending and reduce taxes, increase aggregate demand, raise national income, and alleviate depressions, while insufficient revenue will cover spending by issuing public debt, thus increasing debt.

  8. Anonymous users2024-02-04

    If you add a condition to the question, you can choose A in the short term, but in the long run, it will cause inflation.

  9. Anonymous users2024-02-03

    1600 box modeling finance this is 1600 box modeling finance this for.

  10. Anonymous users2024-02-02

    Answer]: B It can be seen from the average filial piety and balance income of the four sectors that since m>0, the various multipliers in the four-sector economy have become smaller than the three-sector purchase expenditure multiplier, indicating that the role of spontaneous demand increase in the four-sector economy in increasing national income has declined.

  11. Anonymous users2024-02-01

    Answer]: A contractionary fiscal policy refers to a policy behavior that reduces and suppresses aggregate social demand mainly by increasing taxes and reducing expenditures, thereby reducing deficits or increasing surpluses. Under the effect of multipliers, a reduction in aggregate demand can lead to a multiple-fold reduction in national income, thus achieving the policy objectives of curbing excessively rapid economic growth and controlling inflation.

    Falling inflation will lead to an increase in domestic unemployment. The loose monetary policy has shifted the line to the right, causing interest rates to fall and capital outflows to increase.

  12. Anonymous users2024-01-31

    Answer]: A expansionary fiscal policy will ease the economic depression and at the same time increase **debt. So the answer is A.

  13. Anonymous users2024-01-30

    Answer: A

    Expansionary fiscal policy can increase spending and reduce taxes, increase aggregate demand, raise national income, and moderate depressions. At the same time, the increase in spending and the decrease in taxes will lead to a lack of revenue, so it will also increase the debt.

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