Need 100-125 words response for each questions. No Plagiarism. Don’t use outside sources. Due in 8 hours
Q1. Define fiscal policy and its key objectives. What government agencies are responsible for making decisions on fiscal policy actions and implementations?
Q2. Describe briefly the short-run and long-run effects of the rising budget deficit and public debt. What is the crowding out effect? Why has the US economy seldom been faced with the crowding out effect in recent decades despite the skyrocketing budget deficit and public debt?
Q3. Explain why the velocity of either M 1 or M 2 is expected to rise during a rising interest rate trend and why it is expected to fall during a declining interest rate trend?
Q4. Why do neither monetarists nor Keynesians suggest maintaining a constant federal funds rate target? What potential consequences do they anticipate if a constant target were to be maintained?
Q5. Why does excessive money supply, usually called printing money, accelerate inflation? Give an example.
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