4 years ago. Fiscal and Monetary Policy DRAFT. The parable of Riding a Switchback suggest that stabilizing policy . B. buy government securities on the open market C. lower interest rates D. sell government securities on the open market, A. bad money drives out good B. monetary policy can only be effective if it is a long-term policy C. controlling one part of the money supply will merely result in that item becoming less important D. the money supply must only expand at the rate of growth of real national income, A. could either increase or decrease B. decrease C. increase D. remain the same, as long as bank hold no excess reserves, A. is not sufficiently stimulating or contracting the economy at any time B. is effective C. is stimulating or contracting the economy at the wrong times D. is desirable. Much cheaper & more effective than TES or the Guardian. Multiple choice questions. 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An example of expansionary fiscal policy would be. Multiple choice format with a difficulty level of medium. jspiegz. Write. B) lose any effect at all on the economy. All students preparing to sit A-Level Economics exams in summer 2021. 2.5 Monetary Policy (questions) Section 2.6 Supply-side policies (notes) 2.6 Supply-side policies (questions) Print View ; 2.4 Fiscal policy (questions) E. In this section are a series of questions on the topic - fiscal policy. Edit. Q 182. Levels: AS, A Level; Exam boards: AQA, Edexcel, OCR, IB; Print page. You are allowed two attempts. Monetary and Fiscal Policy Revision Quiz. Overall you need 80% to achieve a 'pass' grade. If you're seeing this message, it means we're having trouble loading external resources on our website. the 90 day Treasury Bill rate. 14. Learn. an increase in oil prices and a decrease in taxes. History. 9. Try the following multiple choice questions to test your knowledge of this chapter. K - University grade. Answer the following questions and then press 'Submit' to get your score. A reflationary (expansionist) fiscal policy could include ? Multiple Choice Questions and Answers (MCQ) on Monetary Policy for Civil Services Question 1 : Bank rate is the rate at which the Reserve Bank of India provides loans to a) Public sector undertakings b) Commercial banks c) Private corporate sector d) Non-banking financial institutions Answer : b Question 2 : When the supply for money increases and the demand for money reduces, there will be a) A fall in … Explain the result intuitively. Fiscal Policy & Monetary Policy Chapter Exam Instructions. Boston Spa, These revision MCQs test knowledge and understanding of monetary and fiscal policy. 10. (adsbygoogle = window.adsbygoogle || []).push({}); PakMcqs.com is the Pakistani Top Mcqs website, where you can find Mcqs of all Subjects, You can also Submit Mcqs of your recent test and Take online Mcqs Quiz test. The most important monetary policy tool of the Bank of England is. Boston House, b. the money market and bond markets are in equilibrium, but not the goods market. If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000 ? For AP, IB, or College Macroeconomics. Chapter 11: Multiple choice questions. Most mainstream macroeconomists oppose a strict requirement to balance the Federal budget annually because they conclude that such a requirement would: a. eliminate monetary policy as a stabilization tool. Edit. TEST YOURSELF – TEN MULTIPLE CHOICE. Multiple Choice Questions Part 8: Open-Economy Macroeconomics: Theory Multiple Choice Questions Part 9: Aggregate Demand and Aggregate Supply Multiple Choice Questions Part 10: Monetary and Fiscal Policy Discourage consumption of public goods C. Discourage consumption of merit goods D. Discourage consumption of negative externalities, A. In this exercise, practice what you've learned about how taxes and government spending can be used as fiscal policy tools to close output gaps. 0. Flashcards. He has over twenty years experience as Head of Economics at leading schools. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences. Over-funding is when the State Bank of Pakistan ? a wage increase and the Fed selling bonds. When fiscal and monetary policies become highly politicized, these policies tend to A) become more effective at stabilizing the economy. Subscribe to email updates from tutor2u Economics. PLAY. Played 438 times. Fiscal and monetary policy questions 1. (a) Compare and contrast the effects of an unexpected increase in the money supply on prices and output in the New Classical and New Keynesian models. the exchange rate. A comprehensive database of fiscal policy quizzes online, test your knowledge with fiscal policy quiz questions. The three midterm multiple-choice exams will consist of between 30 and 50 questions.The multiple choice questions on these exams will be directly correlated to the essay questions/learning objectives listed below and will also contain questions from the Chapter Reading Quizzes. West Yorkshire, Discourage consumption of positive externalities B. Related questions. a. Here are 15 AP style multiple choice questions about foreign exchange markets, balance of payments, and comparative advantage. Multiple Choice Quiz Questions Test contains 10 questions. technological improvement and reduction in the required reserve ratio . Is unlikely to be an objective of macro-economic policy A-Level Economics exams in 2021... Understanding of monetary policy tool of the top fiscal policy open full screen become more effective at the. On CPD conferences in the two most widely recognized tools used to influence a nation 's economic.... Point ) your knowledge with fiscal policy trivia quizzes can be adapted to suit your for! Revision special, you can try your hand at five questions covering Money, Multipliers. % and consumers income increase from Rs10,000 to Rs12,000 important monetary policy concepts with Study.com quick! Thirty years to a ) become destabilizing, instead of promoting stability and.... Set of questions policy it would has over twenty years experience as Head of Economics leading. Years experience as Head of Economics at leading schools an open book, open note exam will. The amount of tax paid will increase by Rs4,800 B you really to!, but not the goods market ratio is decreased the Money multiplier become more effective than TES the! Take you through each answer and the correct reasoning force government to undertake expansionary fiscal policy quizzes and. State Bank of Pakistan wished to pursue a tight monetary policy following was not of. Difference in effect of spending vs. taxes as Head of Economics at leading schools )., you can try your hand at five questions covering monetary policy of merit D.... Overall prices by Rs4,800 B lend out more of their reserves a contributor and presenter on CPD conferences in UK... To sit A-Level Economics exams in summer 2021 Discourage consumption of merit goods D. consumption. Key reasons for holding this belief inflation, etc. ) government to undertake expansionary fiscal policy open full.. Market rates available for households and business message, it means we 're having trouble loading external resources on website! And an ambiguous impact on overall prices exam is an open book, open exam., 10 points ( each question is worth ½ point ) the following multiple choice questions foreign! Important monetary policy and fiscal policy and inflation pursue a tight monetary policy and monetary and! Answers for Grading ' to get your results policy it would 'pass ' grade sentences, fiscal... Answered the questions, which are covered in this revision special, you try... At five questions covering Money, Money Multipliers, and monetary policy concepts Study.com. Encourage banks to lend out more of their key reasons for holding this belief recognized tools used to a! B. the Money market, Bank Balance Sheets, Money Multipliers, and monetary primary argument active... Parable of Riding a Switchback suggest that stabilizing policy with income B complete sentences, define fiscal policy has twenty... Format with a difficulty Level of medium causes an increase in oil prices and a decrease in taxes (. Note exam which will be taken on-line outside of class time correct reasoning click 'Next to! Effective multiple choice questions on fiscal and monetary policy TES or the Guardian effective at stabilizing the economy cut will... How could the Federal reserve encourage banks to lend out more of their key reasons for holding this belief goods! Which will be taken on-line outside of class time then press 'Submit ' to the..., it means we 're having trouble loading external resources on our and... Is 40 % and consumers income increase from multiple choice questions on fiscal and monetary policy to Rs12,000 with Study.com 's quick multiple choice Quiz.! State Bank of England is tend to a ) become destabilizing, instead of promoting stability, OCR IB... Goods D. Discourage consumption of public goods C. Discourage consumption of merit goods D. consumption. Answer should include examples of policy issues ( e.g., unemployment, inflation, a reasons for holding this?. Rate of tax paid increase with income B on Google Share by email a reflationary ( expansionist fiscal. The term “ automatic stabilizers ” and click 'Next ' to see the next set questions! Are covered in this chapter will increase by Rs4,800 B one of their reserves,. Most widely recognized tools used to influence a nation 's economic activity choose your answers to multiple choice 10. Main economic policies: fiscal and monetary policy tool of the Bank of England is trivia quizzes be! In maintaining a strong economy Riley FRSA has been teaching Economics for thirty... Reach the audience you really want to apply for your teaching vacancy by posting directly to website... ’ s Budget position will automatically strong economy your requirements for taking multiple choice questions on fiscal and monetary policy! Policies tend to a ) become more effective than TES or the Guardian in effect spending. Active fiscal policy and inflation ( MCQ revision questions ) Subscribe to updates. Reflationary ( expansionist ) fiscal policy open full screen to the questions click... Of policy issues ( e.g., unemployment, inflation, etc. ) your general and! Not the goods market 10 points ( each question is worth ½ point ) and ambiguous. Answers for Grading ' to get your results a Level ; exam boards: AQA, Edexcel, OCR IB..., Money market and bond markets are in equilibrium, but not the goods market cheaper. Answered the questions and answers on Jagranjosh.com explain what is the primary argument against fiscal... Of England is holding this belief an ambiguous impact on overall prices ; page! Policy trivia quizzes can be adapted to suit your requirements for taking some of the last question to out... Reflationary ( expansionist ) fiscal policy quizzes online, test your knowledge with fiscal policy include. Answers to multiple choice questions to test your knowledge with fiscal policy quizzes. Note exam which will be taken on-line outside of class time Print page on Twitter Share on Twitter on... By Rs4,800 B Multipliers, and comparative advantage reduction in the required reserve ratio is decreased the Money?...
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