2. Mr. Weiss Expansionary Fiscal Policy, Interest Rates, and Net Exports - Section 8 - Module 45 Please fill in the blanks and answer the questions that follow: The government of Econville could engage in expansionary fiscal policy by either _________________ government spending or _____________________ taxes.

3. Mr. Weiss Expansionary Fiscal Policy, Interest Rates, and Net Exports - Section 8 - Module 45 Please fill in the blanks and answer the questions that follow: The government of Econville could engage in expansionary fiscal policy by either __increasing________ government spending or ___reducing_____________ taxes.

4. Mr. Weiss Expansionary Fiscal Policy, Interest Rates, and Net Exports - Section 8 - Module 45 1. On the graph below, demonstrate the effect of expansionary fiscal policy.

5. Mr. Weiss Expansionary Fiscal Policy, Interest Rates, and Net Exports - Section 8 - Module 45 1. On the graph below, demonstrate the effect of expansionary fiscal policy. 2. The changes in the graph above correspond with a/an ________ in interest rates in Econville.

6. Mr. Weiss Expansionary Fiscal Policy, Interest Rates, and Net Exports - Section 8 - Module 45 1. On the graph below, demonstrate the effect of expansionary fiscal policy. 2. The changes in the graph above correspond with a/an __increase______ in interest rates in Econville.

7. Mr. Weiss Expansionary Fiscal Policy, Interest Rates, and Net Exports - Section 8 - Module 45 3. How would the interest rate change identified in question 2 affect business spending (Investment)? 4. Would this change in business spending support or counteract the original purpose the government of Econville had in mind?

8. Mr. Weiss Expansionary Fiscal Policy, Interest Rates, and Net Exports - Section 8 - Module 45 3. How would the interest rate change identified in question 2 affect business spending (Investment)? Business spending (Investment) would decrease. 4. Would this change in business spending support or counteract the original purpose the government of Econville had in mind? It would counteract the expansionary fiscal policy move.

9. Mr. Weiss Expansionary Fiscal Policy, Interest Rates, and Net Exports - Section 8 - Module 45 5. On the graph below demonstrate the effect of other countries observing the changes in interest rates identified in question 2. (An increase in interest rates)

10. Mr. Weiss Expansionary Fiscal Policy, Interest Rates, and Net Exports - Section 8 - Module 45 5. On the graph below demonstrate the effect of other countries observing the changes in interest rates identified in question 2. 6. The change in the above graph would cause a/an _______________ in the value of the currency of Econville.

11. Mr. Weiss Expansionary Fiscal Policy, Interest Rates, and Net Exports - Section 8 - Module 45 5. On the graph below demonstrate the effect of other countries observing the changes in interest rates identified in question 2. 6. The change in the above graph would cause a/an ___increase______ in the value of the currency of Econville.

12. Mr. Weiss Expansionary Fiscal Policy, Interest Rates, and Net Exports - Section 8 - Module 45 7. As a result of this change in the currency value, Econville exports would ______________. 8. As a result of this change in the currency value, Econville imports would ______________. 9. Do the export effect and the import effect shown in questions 7 and 8 support or counteract the original purpose the government of Econville had in mind? 10. What is the economic term used to describe the effect discussed in question 3? 11. What is the economic term used to describe the effect discussed in questions 7 and 8?

13. Mr. Weiss Expansionary Fiscal Policy, Interest Rates, and Net Exports - Section 8 - Module 45 7. As a result of this change in the currency value, Econville exports would __fall________. 8. As a result of this change in the currency value, Econville imports would __rise________. 9. Do the export effect and the import effect shown in questions 7 and 8 support or counteract the original purpose the government of Econville had in mind? counteract 10. What is the economic term used to describe the effect discussed in question 3? Crowding out 11. What is the economic term used to describe the effect discussed in questions 7 and 8? Foreign purchases effect

14. Mr. Weiss Expansionary Fiscal Policy, Interest Rates, and Net Exports - Section 8 - Module 45 12. What can you conclude about the effectiveness of expansionary fiscal policy? Crowding out and foreign purchases tend to offset expansionary fiscal policy. The degree which these actually do offset each other is a controversy in macroeconomics.

15. Mr. Weiss Expansionary Fiscal Policy, Interest Rates, and Net Exports - Section 8 - Module 45