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Policy Space Game

Total questions: 8

Worksheet time: 3mins

Name
Class
Date
1.

Which are better to use as exchange rate instruments?

a)

Fixed Pegs and Full Floating

b)

Fixed Pegs and Managed Floating

c)

Soft Pegs and Managed Floating

d)

Soft Pegs and Full Floating

2.

Which policy aims to achieve price stability target?

a)

Income policy

b)

Proactive trade policy

c)

Industrial policy

d)

Institutional policy

3.

Proactive trade and industrial policies main target is

a)

Maintain sustainable current-account position

b)

Foster nascent industrial activity

c)

Maintain sustainable current-account position

4.

We can achieve economic growth target through

a)

Increase interest rate

b)

Put an import-tariff policy

c)

Maintain a stable real exchange rate

5.

Can approach macroeconomic stabilization through fiscal policy with the help of ...................................... instrument.

a)

Controlling wage growth

b)

Fiscal stabilization

c)

Promoting technology adaptation

6.

An important instrument for proactive trade and industrial policies is

a)

Subsidizing exports

b)

Tightening compulsory licensing

c)

Changing the domestic financial system

7.

Monetary policy aims mainly to have

a)

Better technology transfer

b)

Higher economic growth

c)

Sustainable current account position

8.

Monitoring information and co-ordination externalities need which policy?

a)

Fiscal Policy

b)

Exchange rate policy

c)

Monetary Policy

d)

Institutional Policy