monetary policy and Fiscal policy quiz

monetary policy and Fiscal policy

1 / 20

A government is concerned about the timing of the impact of fiscal policy changes and is considering requiring the compilation and reporting of economic statistics weekly, rather than quarterly. The new reporting frequency is intended to decrease :

2 / 20

Qualities of effective central banks include :

3 / 20

Roles and objectives of fiscal policy most likely include:

4 / 20

If the money supply is increasing and velocity is decreasing :

5 / 20

Which of the following statements is least accurate? The existence and use of money :

6 / 20

A country that targets a stable exchange rate with another country’s currency least likely :

7 / 20

Purchases of securities in the open market by the monetary authorities are least likely to increase :

8 / 20

The Fisher effect states that the nominal interest rate is equal to the real rate plus :

9 / 20

The size of a national debt is most likely to be a concern for policymakers if:

10 / 20

Monetary policy is most likely to fail to achieve its objectives when the economy is :

11 / 20

If a country’s inflation rate is below the central bank’s target rate, the central bank is most likely to:

12 / 20

A central bank’s policy goals least likely include :

13 / 20

A central bank conducts monetary policy primarily by altering :

14 / 20

Both monetary and fiscal policy are used to :

15 / 20

Fiscal policy is most likely to be expansionary if tax rates:

16 / 20

Suppose an economy has a real trend rate of 2%. The central bank has set an inflation target of 4.5%. To achieve the target, the central bank has set the policy rate at 6%. Monetary policy is most likely:

17 / 20

The money supply curve is perfectly inelastic because the money :

18 / 20

An increase in the policy rate will most likely lead to an increase in :

19 / 20

Monetary policy is likely to be least responsive to domestic economic conditions if policymakers employ:

20 / 20

If money neutrality holds, the effect of an increase in the money supply is :


monetary policy

Fiscal policy

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