70929
Policy
- Monetary
- Expansionary
- Purchases
- - Lower
Discount Rate
- - Lower Reserve
Requirement
- - Lower Reserve
Requirement
- T Bills (Short
Term Maturity
Bills)
- - Lower
Discount Rate
- Purchases
- Contractory
- Sales
- + Raise
Discount Rate
- + Raise Reserve
Requirement
- + Raise Reserve
Requirement
- + Raise
Discount Rate
- Sales
- SHORT TERM
- Quick to
implement
- Expansionary
- Fiscal
- To influence
business cycle
- LONG TERM
- Slow to
implement
- Expansionary
- Lower taxes
- Ricardian
Equivalance
Anotações:
- When people see that low taxes today may be raised tomorrow, they save tax cut. AD is not effected.
- Increase Spending
- Dems
- Grows gov't
- Grows gov't
- Response to
real shocks
Anotações:
- Can cause crowding out -There is little gov't can actually do to combat real shock
- Dems
- Ricardian
Equivalance
- RECESSION
- Lower taxes
- Contractory
- Raise Taxes
- Reduce Spending
- Repubs
- private sector
- private sector
- Reduce Spending
- Growth ABOVE
Solow Model
- Raise Taxes
- DOES NOT AFFECT SOLOW GROWTH MODEL!!!!!
- To influence
business cycle
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