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25 Sep 2019

The fiscal policy attempts to achieve all of the following objectives except​ ______. 

 

(i) stable money supply 

(ii) price stability 

(iii) economic growth 

(iv) full employment

 

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Related questions

Which of the following is not a goal of Federal economic policy? 
 
(i) Economic Growth 
(ii) Price stability 
(iii) High level of inflation 
(iv) Full employment

Important policy objectives of the federal government include economic growth, high employment, price stability, and a balance in international transactions. The achievement of these objectives is the responsibility of monetary policy, fiscal policy, and debt management carried out by the Federal Reserve System, the President, the Congress, and the U.S. Treasury. Describe the responsibilities of the various policymakers in trying to achieve the four economic policy objectives.

Expansionary fiscal policy is so named because it:
 
(i) involves an expansion of the nation's money supply.
(ii) necessarily expands the size of government. 
(iii) is designed to expand real GDP.
(iv) is aimed at achieving greater price stability.

 

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