In the presence of shocks, monetary policy cannot be used to stabilize both the inflation rate and GDP. O a. Consumer confidence O b. Export Oc. None of the answers is correct O d. Import
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- Which of the following would be classed as an expansionary monetary policy? O A. A decrease in the quantity of money. В. A decrease in interest rates. С. An increase in government taxation. O D. An increase in government expenditure. O E. An increase in VAT.Under what circumstances does aggregate demand increase? Aggregate demand increases if expected future income, inflation, or profits .And aggregate demand increases if fiscal policy government expenditure. O A. decrease; decreases O B. increase; decreases O C. increase; increases O D. decrease; increases Aggregate demand increases if fiscal policy taxes or transfer payments. O A. decreases; increases O B. decreases; decreases O C. increases; decreases O D. increases; increases Aggregate demand increases if monetary policy the quantity of money and interest rates. O A. increases; increases O B. increases; decreases O C. decreases; increases O D. decreases; decreases or foreign income Aggregate demand increases if the exchange rate O A. increases; decreases Click to select your answer. MacBook Air DD DII F11 F10 :こ- F9 F8 888 F7 吕0 F6 F5 F4 F3 F2 esc F1 & $ # 7 ! 2 3 4 1 P Y W E R Q K D F G A S 00 TWhen inflation falls, people Select one: O a. make less frequent trips to the bank and firms make more frequent price changes O b. make more frequent trips to the bank and firms make less frequent price changes Oc. make less frequent trips to the bank and firms make less frequent price changes O d. make more frequent trips to the bank and firms make more frequent price changes ge en this page
- One reason that inflation can persist even after its original causes have been removed is that... O a. Workers expect wage increases to match increases in labour productivity. O b. Workers are willing to accept wage increases lower than the increase in productivity. O c. Governments embark on a deficit-cutting programme. O d. Inflationary expectations cause the AS curve to continue shifting upwards. The Bank of Canada ensures that money-supply O e. growth matches growth in real GDP.What determines a country's long run average Inflation rate? Select one: a. The rate of inflation in a country's trading partners. Ob. The rate at which the national debt is rising. c. The rate at which costs are rising. O d. The real rate of currency depreciation. O e. The growth rate of the money supply.Which of the following are examples of monetary policy that decrease aggregate demand? O A. a decrease in the quantity of money and an increase in interest rates O B. a decrease in taxes and a decrease in interest rates O C. an increase in transfer payments and an increase in interest rates O D. an increase in the quantity of money and a decrease in interest rates 身
- If the central bank responds to a single negative supply shock with monetary validation, we can expect an increase in.. O a. The money supply but a decrease in costs and prices. O b. Costs, the price level and the money supply. O c. The size of the output gap. O d. The price level and unemployment. O e. Costs but a decrease in real national incomeWhich of the following represents a short-run e_ect of a monetary contraction? Select one: O a. an increase in the interest rate O b. a reduction in the price level O c. all of the above O d. a reduction in outputIf economists say that monetary policies cannot affect GDP in the long run, what do they mean? O a. Monetary policy will change potential output and inflation by equal amounts O b. Only fiscal policies can affect potential output O C. Workers and firms have money illusion O d. Workers and firms have no money illusion
- Constant dollars are dollars Select one: O a. corrected for general price level changes. O b.issued by the Federal Reserve with values that fail to change even in the face of inflation or deflation. Oc. measured in terms of current-year prices. O d. issued by the U.S. Treasury with values that fail to change even in the face of inflation or deflation.In a closed economy, if the government wants to increase aggregate demand, it can O increase, increase O increase, decrease O decrease, increase O decrease, decrease government purchases or taxe The nation of Ectenia has long banned the export of its puka shells. A newly elected resident removes the export ban. This change in policy will cause the nation's currency to making the goods Ectenia exports expensive. O appreciate, less O appreciate, more O depreciate, less O depreciate, moreHigher inflation Select one: O a. causes firms to change prices less frequently and makes relative prices more variable O b. causes firms to change prices more frequently and makes relative prices more variable O. causes firms to change prices more frequently and makes relative prices less variable O d. causes firms to change prices less frequently and makes relative prices less variable