What Type of Monetary or Fiscal Policy Will Generate Both

question 119

Essay

What type of monetary or fiscal policy will generate both a "stronger" economy (increased Y) and a "stronger" dollar (increased e) in a large open economy with a floating exchange rate? Explain.

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Definitions:

Quantitative Data

Data that can be quantified and verified, and is amenable to statistical manipulation. It represents the quantity of something rather than its quality.

Numerical Data

Information that is quantifiable and usually collected in number form, used for statistical analysis or calculations.

Interval Data

A type of numerical data which not only has order, but also has meaningful differences between values, though it lacks a true zero point (e.g., temperature in Celsius).

Ordinal

A type of data or scale that shows an ordered relationship among the variable's possible values, but does not specify the magnitude of difference between them.