
Monetary Policy
Quiz
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Other
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University
•
Hard
Nahreen Rahman
Used 12+ times
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10 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The use of money and credit controls to change the macroeconomy is
Monetary policy.
Considered ineffective by most economists.
No longer used in the United States.
Fiscal policy.
2.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
____________ is the price paid for the use of money.
Gold
Monetary policy
Fiscal policy
The interest rate
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
An increase in the money supply will
Reduce interest rates and increase aggregate demand.
Reduce interest rates and decrease aggregate demand.
Raise interest rates and increase aggregate demand.
Raise interest rates and decrease aggregate demand.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The speculative, transactions, and precautionary demands for money added together give the
Market demand curve for money.
Monetarist demand-for-money curve.
Keynesian liquidity trap.
Market supply curve for money.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
When the money market is in equilibrium in the liquidity trap,
The demand for money is perfectly insensitive to interest rates.
An increase in the money supply does not affect interest rates.
Investment spending falls to zero.
There is no speculative demand for money.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Ceteris paribus, the quantities of money people are willing and able to hold
Decrease as interest rates fall.
Increase as interest rates fall.
Increase as the money supply decreases.
Decrease when the speculative demand increases.
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The money supply curve as determined by current Federal Reserve policy is
Upward-sloping to the right.
Downward-sloping to the right.
Vertical since it's not determined by the interest rate.
Horizontal since it's not determined by the interest rate.
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