What does the interest rate policy involve?

Economic Policies Quiz

Quiz
•
others
•
11th Grade
•
Hard
DAYLA M OWNBY
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Buying and selling government securities
Setting the discount rate or federal funds rate
Changing the amount banks must hold in reserve
Large-scale asset purchases
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the objective of contractionary monetary policy?
To increase money supply to stimulate the economy
To decrease money supply to reduce inflation
To stabilize currency
To promote employment and economic growth
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is an example of expansionary fiscal policy?
Increasing interest rates
Reducing government spending
Increasing government spending
Raising taxes
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which type of fiscal policy aims to reduce inflation?
Expansionary
Contractionary
Neutral
Progressive
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does "crowding out of private investment" refer to in the context of fiscal policy limitations?
Increased private sector growth
Government borrowing reducing private investment
Enhanced foreign investment
Decreased government spending
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the relationship between price and quantity demanded according to the law of demand?
Direct relationship
Inverse relationship
No relationship
Random relationship
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What happens when there is a surplus in the market?
Quantity demanded is greater than quantity supplied
Quantity supplied is greater than quantity demanded
Price increases
Demand increases
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