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Fiscal & Monetary Policy Flashcards | StudBud

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Fiscal & Monetary Policy

8 terms·StudBud Administration·111 plays

Fiscal & Monetary policy quiz

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Questions 8

Answers

1
Reserve Bank of Australia purchasing government securities on the open market is an example of:
contractionary fiscal policy
expansionary fiscal policy
expansionary monetary policy
contractionary monetary policy
2
Which of the following would be considered a supply-side policy?
An increase in the government expenditure
An increase in the minimum wage, increasing spending
Restrictions placed on the amount that can be imported
Investment tax credit for businesses to encourage investment
3
Time lags, which reduce the effectiveness of monetary and fiscal policy measures, represent:
The change in the inflation rate
Delays in the response of the economy to adjust to policies
The changes in export and import prices
Time it takes for a change in exchange rate to take effect
4
What is a measure of inequality developed by the Italian statistician Corrado Gini.
Not Gini Coefficient
Gini Coefficient
Gini Coefficient
Gini Coefficient
5
Fiscal policy refers to:
The government's tax policy
The action of the Reserve Bank to stabilise the economy
Influence of the government of money supply
Spending and tax to monitor and influence a nation's economy
6
All investment being used to maintain the existing capital stock at current level is known as:
gini coefficient
economic growth
steady-state level of GDP
demand-side policy
7
Fiscal deficit will decrease when:
GDP increases slightly, then decreases
GDP decreases
GDP increases
GDP remains constant
8
Automatic stabilizers act to _____ government expenditure.
Gini Coefficient
Decrease
Increase
Maintain