pros and cons of using expansionary and contractionary fiscal and monetary policy tools?
September 21, 2008
asked:
What are the pros and cons of using expansionary and contractionary fiscal and monetary policy tools under the following scenarios: depression, recession, and robust economic growth?
What are the pros and cons of using expansionary and contractionary fiscal and monetary policy tools under the following scenarios: depression, recession, and robust economic growth?
September 22nd, 2008 at 2:40 am
Do I get to share your A if I do your homework for you?
Alright, time for more brainwork.
Expansionary fiscal policy just means stretching out what our dollars are doing around the world.
Contractionary fiscal policy just means taking what our dollar does more into our country.
During a depression or a recession, we have lots of problems to correct with our system. But we may be helped by expanding outward. Think.
During robust economic growth, we can over-extend if we push outward too much… or hamper growth if we don’t extend enough.
Poor Bernanke…
Hope that helps. Remember, the idea of these questions isn’t to test whether you can write; it’s to get you to THINK. You can do it, kid.