Fiscal Vs. Monetary Policy: Question Preview (ID: 7914)


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If the economy of a country is in a recession with high unemployment what should the fed do?
a) Raise the reserve ratio b) Sell Bonds in the open market c) Buy bonds in the open market d) Increase the discount rate
Which policy takes longer usually to take effect?
a) Monetary b) Fiscal c) d)
If there is a recession which policy should be used?
a) Monetary b) Fiscal c) d)
Which of these is NOT a tool of monetary policy?
a) Open market operations b) Moving the discount rate c) Move the reserve requirement d) Increase or decrease taxes
The fed controls which policy?
a) Monetary b) Fiscal c) d)
Fiscal and monetary policy are similar because...
a) Both of them affect the AS b) Both of them affect the AD c) Both of them are countercyclical d) Both of them have the same lags
Which of these is NOT a goal of the monetary policy?
a) Promote maximum employment b) Keep stable prices c) Control the government revenue d) Have long-term interest rates be moderate
Fiscal policy theories are based on which famous economist?
a) David Hume b) John Maynard Keynes c) Thomas Robert Malthus d) Irving Fisher
Fiscal Policy is controlled by the...
a) Government b) Fed c) President d) Treasurer
Government bonds are more likely to be used with which policy?
a) Monetary b) Fiscal c) d)
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