
Fiscal/ Monetary policy
Authored by Jessica Dawson
Other
12th Grade
Used 2+ times

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21 questions
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1.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
Which of the following can work as automatic stabilisers?
progressive taxes and unemployment benefits
regressive taxes and unemployment benefits
progressive taxes and subsidies
unemployment benefits and subsidies
2.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
Fiscal policy involves
actions taken by the government to promote a more equal distribution of income
actions taken by the central bank to influence the money supply and interest rates
tax policies of the government
government policies on taxes and its own expenditure undertaken to influence aggregate demand
3.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
When the government increases its spending by borrowing, it may lead to a decrease in private investment. This is called
balanced budget
crowding out
industrial policy
deregulation
4.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
The policy of the central bank of decreasing the money supply in order to decrease aggregate demand is called _____________________ and works by _____________________.
contractionary monetary policy / increasing interest rates
contractionary monetary policy / decreasing interest rates
expansionary monetary policy / decreasing interest rates
expansionary monetary policy / increasing interest rates
5.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
Expansionary fiscal policy undertaken by the government involves
decreasing taxes and increasing government spending
increasing taxes and decreasing government spending
increasing taxes and increasing government spending
decreasing taxes and decreasing government spending
6.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
In the money market, if the quantity of money demanded is greater than the quantity of money supplied, the interest rate will
rise
fall
remain unchanged
rise or fall depending on the amount of excess demand for money
7.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
If an economy faces a deflationary gap, the appropriate policy response may be
expansionary demand-side policies
expansionary fiscal policy
expansionary monetary policy
all of the above
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