Exam 17: Macroeconomic Policy and Floating Exchange Rates

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Show the effects of an expansionary monetary policy on interest rates, the exchange rate, the current account, the capital account, and aggregate demand.

(Essay)

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Question 41

A contractionary fiscal policy will tend to reduce the demand for loanable funds and drive up interest rates.

(True/False)

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Question 42

Describe how an inconsistent policy affects the equilibrium level of output, the price level, interest rates, capital flows, and the exchange rate.

(Essay)

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Question 43

An expansionary fiscal policy may not have a pronounced effect on aggregate demand with floating exchange rates.

(True/False)

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Question 44

In a closed economy, a contractionary monetary policy:

(Multiple Choice)

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Question 45

When the government employs a combination of higher taxes and lower spending, this type of policy is called a:

(Multiple Choice)

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Question 46

Fiscal policy involves the use of tax and spending policies by the government to influence the level of aggregate demand.

(True/False)

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Question 47

Which of the following is true with respect to contractionary fiscal policy?

(Multiple Choice)

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Question 48

Suppose that a country has a current account deficit and a problem with inflation. A consistent policy mix in this case would be a(n) _ fiscal policy coupled with a(n) _ monetary policy.

(Multiple Choice)

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Question 49

A contractionary monetary policy tends to increase exports.

(True/False)

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Question 50

Monetary policy refers to the use of changes in the level of government debt and interest rates to affect a country's level of economic activity.

(True/False)

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Question 51

Which of the following terms describes the tendency for larger government borrowing to increase interest rates?

(Multiple Choice)

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Question 52

Which of the following statements is true with respect to contractionary fiscal policy?

(Multiple Choice)

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Question 53

The demand for loanable funds is composed of private sector demand and foreign sector demand.

(True/False)

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Question 54

13 A government budget deficit would tend to:

(Multiple Choice)

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Question 55

12 A government budget deficit would tend to:

(Multiple Choice)

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Question 56

Explain why governments tend to view internal balance as being more important than external balance.

(Essay)

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Question 57

External balance refers to the government achieving levels of unemployment and inflation that fit the preferences of the citizens of the country.

(True/False)

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Question 58

In an open economy, expansionary fiscal policy causes:

(Multiple Choice)

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Question 59

An expansionary fiscal policy:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 110

Show the effects of an expansionary monetary policy on interest rates, the exchange rate, the current account, the capital account, and aggregate demand.

A contractionary fiscal policy will tend to reduce the demand for loanable funds and drive up interest rates.

Describe how an inconsistent policy affects the equilibrium level of output, the price level, interest rates, capital flows, and the exchange rate.

An expansionary fiscal policy may not have a pronounced effect on aggregate demand with floating exchange rates.

In a closed economy, a contractionary monetary policy:

When the government employs a combination of higher taxes and lower spending, this type of policy is called a:

Fiscal policy involves the use of tax and spending policies by the government to influence the level of aggregate demand.

Which of the following is true with respect to contractionary fiscal policy?

Suppose that a country has a current account deficit and a problem with inflation. A consistent policy mix in this case would be a(n) _ fiscal policy coupled with a(n) _ monetary policy.

A contractionary monetary policy tends to increase exports.

Monetary policy refers to the use of changes in the level of government debt and interest rates to affect a country's level of economic activity.

Which of the following terms describes the tendency for larger government borrowing to increase interest rates?

Which of the following statements is true with respect to contractionary fiscal policy?

The demand for loanable funds is composed of private sector demand and foreign sector demand.

13 A government budget deficit would tend to:

12 A government budget deficit would tend to:

Explain why governments tend to view internal balance as being more important than external balance.

External balance refers to the government achieving levels of unemployment and inflation that fit the preferences of the citizens of the country.

In an open economy, expansionary fiscal policy causes:

An expansionary fiscal policy:

Introduction: An Overview of the World Economy

Why Countries Trade

Comparative Advantage and the Production Possibilities Frontier

Factor Endowments and the Commodity Composition of Trade

Intra-Industry Trade

The Firm in the World Economy

International Factor Movements

Tariffs

Nontariff Distortions to Trade

International Trade Policy

Regional Economic Arrangements

International Trade and Economic Growth

National Income Accounting and the Balance of Payments

Exchange Rates and Their Determination: A Basic Model

Money, Interest Rates, and the Exchange Rate

Open Economy Macroeconomics

Fixed Exchange Rates and Currency Unions

International Monetary Arrangements

Capital Flows and the Developing Countries

Filters

Exam 17: Macroeconomic Policy and Floating Exchange Rates

Show the effects of an expansionary monetary policy on interest rates, the exchange rate, the current account, the capital account, and aggregate demand.

A contractionary fiscal policy will tend to reduce the demand for loanable funds and drive up interest rates.

Describe how an inconsistent policy affects the equilibrium level of output, the price level, interest rates, capital flows, and the exchange rate.

An expansionary fiscal policy may not have a pronounced effect on aggregate demand with floating exchange rates.

In a closed economy, a contractionary monetary policy:

When the government employs a combination of higher taxes and lower spending, this type of policy is called a:

Fiscal policy involves the use of tax and spending policies by the government to influence the level of aggregate demand.

Which of the following is true with respect to contractionary fiscal policy?

Suppose that a country has a current account deficit and a problem with inflation. A consistent policy mix in this case would be a(n) _____ fiscal policy coupled with a(n) _____ monetary policy.

A contractionary monetary policy tends to increase exports.

Monetary policy refers to the use of changes in the level of government debt and interest rates to affect a country's level of economic activity.

Which of the following terms describes the tendency for larger government borrowing to increase interest rates?

Which of the following statements is true with respect to contractionary fiscal policy?

The demand for loanable funds is composed of private sector demand and foreign sector demand.

13 A government budget deficit would tend to:

12 A government budget deficit would tend to:

Explain why governments tend to view internal balance as being more important than external balance.

External balance refers to the government achieving levels of unemployment and inflation that fit the preferences of the citizens of the country.

In an open economy, expansionary fiscal policy causes:

An expansionary fiscal policy:

Introduction: An Overview of the World Economy

Why Countries Trade

Comparative Advantage and the Production Possibilities Frontier

Factor Endowments and the Commodity Composition of Trade

Intra-Industry Trade

The Firm in the World Economy

International Factor Movements

Tariffs

Nontariff Distortions to Trade

International Trade Policy

Regional Economic Arrangements

International Trade and Economic Growth

National Income Accounting and the Balance of Payments

Exchange Rates and Their Determination: A Basic Model

Money, Interest Rates, and the Exchange Rate

Open Economy Macroeconomics

Fixed Exchange Rates and Currency Unions

International Monetary Arrangements

Capital Flows and the Developing Countries

Filters

Suppose that a country has a current account deficit and a problem with inflation. A consistent policy mix in this case would be a(n) _ fiscal policy coupled with a(n) _ monetary policy.