Answer to Question #104576 in Macroeconomics for Sithabile

Question

A.Which one of the following is not a way that government can intervene in the economy. 1.participating in the market 2.changing the repo rate to change the interest rate 3.regulation by means of policies laws or rules that effect the economy. 4changing the tax and/or structure B.which one of the following could be expected should government plan to apply an expansionary fiscal policy 1.an increase in the tax rate 2.a decrease in the government spending 3.A decrease in the interest rate 4.An increase in the budget deficit

Answer 1

A. Which one of the following is not a way that government can intervene in the economy. 

2. changing the repo rate to change the interest rate 

В. which one of the following could be expected should government plan to apply an expansionary fiscal policy 

4. An increase in the budget deficit