ECO 210 Chp 12 HA

ECO 210 Chp 12 HA - rates and is controlled by the Federal...

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Macroeconomics 210 Chapter 12: Fiscal Policy Homework Assignment Chapter 12 (pg. 438 #1.1, 1.2, 1.3) 1.1) A) Fiscal policy can be described as changes in government spending and taxes to achieve macroeconomic policy objectives B) The federal government controls fiscal policy. 1.2) Fiscal policy includes changes in government spending and taxes and is controlled by the federal government. Monetary policy includes changes in the money supply and interest
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Unformatted text preview: rates and is controlled by the Federal Reserve. Both policies are intended to achieve macroeconomic objectives. 1.3) A) Federal purchases require that the government receives a good or service in return, whereas federal expenditures include transfer payments. B) As a percentage of GDP, federal purchases have decreased since 1960. C) As a percentage of GDP, federal expenditures have increased since 1960....
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