Macro economics:
Quiz no 1
______________________________________________________
1. To increase the money supply, the bank central could:
a.
b.
c.
d.
Cut taxes
Increase the government spending
Encourage people to held more cash (currency in circulation)
Purchase bonds in the open-market
a.
b.
c.
d.
Lower interest rates
Increase lending by the banks
An increase in corporation tax
An increase in discretionary government spending
a.
b.
c.
d.
Freezing pensions
Open-market operations
An increase in direct taxes
A cut in government purchase of goods and services
a.
b.
c.
d.
Decrease government expenditure and increase taxes to decrease aggregate demand
Increase government expenditure and decrease taxes to decrease aggregate demand
Decrease government expenditure and increase taxes to increase aggreagte demand
Increase government expenditure and decrease taxes to increase aggreagte demand
a.
b.
c.
d.
The money supply,government purchase and taxation.
Open-market operations, reserve requirements, and the bankrate
Government expenditure, taxation and reserve requiremnt
Fiats, commodity and deposit money
a.
b.
c.
d.
Reducing government regulations
Comtrolling the budget deficit
Establishing automatic stabilisers
Making revenue and expenditure decisions
a.
b.
c.
d.
Buy government securities on the open market
Lower interest rates
Sell governemnt securities on the open market
Reduce the minimum reserve asset ratio
2. Reflationary (expansionist) fiscal policy could include?
3. Point out the monetary policy instrument:
4. How should fiscal policy be used during inflation?
5. The three main tools of monetary policy are:
6. What is the fundamental role of fiscal policy?
7. If the state of bank of a developing country wished to purchase a tight
monetary policy it would?
8. Which of the following Federal Government policy decisions would increase
inflationary pressures:
a. None
b. Setting a surplues federal budget
c. Increaseing government expenditure
d. Raising personal income taxes
9. Point out which of the following is not an instrument of fiscal policy:
a.
b.
c.
d.
A cut in the marginal rates of IRPF
An increase in tobacco taxes
An increase in the interest rate
A cut in unemplyment compensation
a.
b.
c.
d.
Unemployemnt Reduction
Expenditure and tax revenue
Steel mill privatization
None
10. Fiscal policy is the government programme with respect to it’s_______?
Correct answers:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
D
D
B
A
B
D
C
C
C
B