BIE1009 - Week 11

What is a fiscal policy?

• Is the use of government expenditure and revenue collection to influence the economy.

• Is the use of government expenditure to influence the economy.

• Is the use of government revenue collection to influence the economy.

• Is the use of household expenditure and revenue collection to influence the economy.

What is a Monetary policy?

• The process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest to attain a set of objectives oriented towards the growth and stability of the economy.

• The process by which the monetary authority of a country controls the supply of money.

• The process by which the monetary authority of a country controls the rate of interest to attain a set of objectives oriented towards the growth and stability of the economy.

• The process by which the monetary authority of a country attains a set of objectives oriented towards the growth and stability of the economy.

Examples of Fiscal policy include: ________ and amount of government spending.

Is the Monetary or Fiscal policy set through laws?

Is the Monetary or Fiscal policy independent and unelected?

Principles of Fiscal policy include manipulating the level of aggregate _____ in the economy to achieve economic objectives of ____ stability, full ______, and economic _____.

• demand; price; employment; growth

• supply; price; unemployment; stability

• demand; household; revenue; growth

• benefit; income; happiness; stability

According to Wan Farisan Wan Sulaiman article (on Spectrum), what effort can fiscal policy assist to achieve a more inclusive economy?

• higher spending in education, healthcare and infrastructure development

• higher spending in affordable housing, healthcare and real estate development

• higher spending in sports, public transportation and tertiary education

• higher spending in food security, healthcare and public housing

Which of the following is not a monetary policy objective?

• To maintain domestic price stability

• To achieve a higher rate of economic growth

• To achieve full employment of resources

• Controlling the equitable distribution of income and wealth

________ Policy is actions intended to encourage (or expand) economic growth

• Expansionary

• Fiscal

• Monetary

• Contractionary

Expansionary Policies are intended to _____ economics growth