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Monetary Policy

Total questions: 8

Worksheet time: 7mins

Name
Class
Date
1.

If we reduce the interest rates level, it would be more business and people borrow and spend more money. In which monetary policy we confirm that statement?

a)

Restrictive Monetary Policy

b)

Stimulative Monetary Policy

c)

Reducing Quantity of Funds

d)

Increasing Demand of Funds

2.

is the delay between the time a problem arises and the time it is recognized. Most economic problems are initially revealed by statistics, not actual observation.

a)

implementation lag

b)

Stimulative Monetary Policy

c)

Recognition lag

d)

Restrictive Monetary Policy

3.

The difference between the time a serious problem is recognized and the time the Fed implements a policy to resolve that problem is known as....

a)

implementation lag

b)

Stimulative Monetary Policy

c)

Recognition lag

d)

Restrictive Monetary Policy

4.

In which type of Monetary Policy do not stimulate the economy?

a)

implementation lag

b)

Stimulative Monetary Policy

c)

Recognition lag

d)

Restrictive Monetary Policy

5.

There is a high level of inflation and a low level of unemployment. Which kind of Monetary Policy you are going to implemented?

a)

Restrictive Monetary Policy

b)

Stimulative Monetary Policy

c)

Recognition lag

6.

There is a high level of unemployment, low inflation and high interest rates. Which kind of Monetary Policy you are going to implemented?

a)

Restrictive Monetary Policy

b)

Stimulative Monetary Policy

c)

Recognition lag

7.

What happened in the first graph?

a)

Increase the Supply and reduce the interest rate

b)

Increase the demand and increase the interest rate

c)

Increase the Supply and Increase the interest rate

d)

Decrease the Supply and decrease the interest rate

8.

What happened in the first graph?

a)

Increased the supply and Increased the interest rate

b)

Decreased the supply and Increased the interest rate

c)

Increased the supply and Increased the interest rate

d)

Decreased the supply and Increased the interest rate