Exam 17: Macroeconomic Policy I: Monetary Policy

Most monetarists recognise that:

Causality is clear and mechanical with the quantity theory of money. If M increases because V and Q are:

Monetarists and classical economists assume that:

With a floating exchange rate, intervention in the FOREX market is usually known as:

The velocity of money in Australia:

Which of the following statements is correct with respect to monetary policy?

According to classical economists:

Monetarists argue that velocity is reasonably predictable.

Classical economists traditionally believed that:

The cash rate is the interest rate charged:

A sharp fall in investment in Australia will most likely result in the RBA:

According to monetarists:

If the money supply = $100 billion, nominal GDP = $400 billion, then the velocity of money is:

The average number of times per year each dollar is used to transact an exchange is known as the:

Australia has experimented with policy based on the monetarist policy prescription of monetary targeting.

If the velocity of money is 3, nominal GDP is $300 billion, then the supply of money is:

The time before information about the current phase of economic activity in the real world becomes available is called the:

Under a fixed exchange rate system, an excess supply for the Australian dollar in the FOREX market often resulted in:

According to monetarists:

The effect of an increase in interest rates by the RBA is likely to be: