Home / Questions / Label each of the following scenarios in which there are problems enacting and applying fi
Label each of the following scenarios in which there are problems enacting and applying fiscal policy as being an example of either recognition lag, administrative lag, or operational lag.
a. To fight a recession, Congress has passed a bill to increase infrastructure spending—but the legally required environmental-impact statement for each new project will take at least two years to complete before any building can begin.
b. Distracted by a war that is going badly, inflation reaches 8 percent before politicians take notice.
c. A sudden recession is recognized by politicians, but it takes many months of political deal making before a stimulus bill is finally approved.
d. To fight a recession, the president orders federal agencies to get rid of petty regulations that burden private businesses—but the federal agencies begin by spending a year developing a set of regulations on how to remove petty regulations.
6. In January, the interest rate is 5 percent and firms borrow $50 billion per month for investment projects. In February, the federal government doubles its monthly borrowing from $25 billion to $50 billion. That drives the interest rate up to 7 percent. As a result, firms cut back their borrowing to only $30 billion per month. Which of the following is true?
a. There is no crowding-out effect because the government’s increase in borrowing exceeds firm’s decrease in borrowing.
b. There is a crowding-out effect of $20 billion.
c. There is no crowding-out effect because both the government and firms are still borrowing a lot.
d. There is a crowding-out effect of $25 billion.
Dec 05 2019 Read more Less More
A pivot in a linkage has a pin in the figure whose dimension a ± ta is to be established. Thethickness of the link clevis is 37.5 ± 0.125 mm. The designer has concluded t...
Jun 22 2020Procedure: find Annual Report from Hilton Hotel company, USA. Annual Reports can often be downloaded from the companys web site. Read through the Annual Reports looking ...
Mar 21 202012/31/20 Lexus inc recorded an unrealized gain of $5000 related to its trading debt securities original purchased on 12/15/20for $20000. Lexus recognized pretax income of...
Sep 02 2020Simpson Co. produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Simpson has identifie...
Jun 06 2018Please provide the reference for the answer as well. Thanks. company? Why or why not? DISCUSS. 1 mars (c) We have covered the three main roles of financial managers (cap...
Aug 28 2020Keria Corp. prepared the following random list of assets, liabilities, revenues, and expenses from its December 31, 2010, accounting records. The beginning retained earni...
Dec 07 2019Apex Systems Co. offers its services to residents in the Seattle area. Selected accounts from the ledger of Apex Systems Co. for the fiscal year ended December 31, 2016, ...
May 14 2020In a disciplinary interview, what task must the supervisor or manager accomplish before handing down discipline to the employee?(A) Talk to others(B) Review the company p...
Apr 24 2018Consumer Reports provided overall customer satisfaction scores for AT&T, Sprint, T-Mobile, and Verizon cell-phone services in major metropolitan areas throughout the Unit...
Aug 24 2020A box contains four $10 bills, six $5 bills and two $1 bills. Two bills are taken at random from the box without replacement. What is the probability that both bills wil...
May 01 2020
Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.
