Next

1. Which of the following is not a tool of monetary policy?

2. Which of the following are not the tools of fiscal policy?

3. Which of the following types of policy leaves policy to the discretion of policymakers?

4. Which of the following types of policy leaves policy to the dictates of a set of rules?

5. Which of the following is not a problem associated with active policy?

6. Which of the following is not a problem associated with passive policy?

7. Which type of policy does the Fed utilize?

8. Which type of policy does the government utilize?

9. What type of policy is it when the Fed decides to lower the reserve requirement?

10. What type of policy is it when the Fed follows a rule that tells them to perform open market operations?

11. What type of policy is it when the government decides to raise taxes?

12. What type of policy is it when the government follows a rule that tells it to increase government spending?

13. What is another name for active policy?

14. What type of policy is more susceptible to unscrupulous behavior?

15. What is another name for passive policy?

16. Which of the following is not considered in passive policy?

17. Which of the following problems are common to both active policy and passive policy?

18. Which type of policy is better, active policy or passive policy?

19. What is a major problem associated with active and passive, fiscal and monetary policy?

20. What do you call the lag that exists because economic problems are not immediately noticed?

21. What do you call the lag that exists because implemented policies do not take effect immediately?

22. What is the major effect of lags?

23. What is the link between monetary policy and real variables?

24. What is the name of the theory that states that no link exists between monetary policy and real variables?

25. What is the basis of the neutrality of money theory?

26. What is the equation for output?

27. What happens to output when government spending increases?

28. What happens to investment when government spending increases?

29. What happens to consumption when taxes fall?

30. What type of policy most affects investment?

31. What is the effect on consumption of an increase in the interest rate?

32. What is the effect on net exports of an increase in interest rates?

33. What is the effect on investment of an increase in interest rates?

34. What is the effect of expansionary monetary policy on the interest rate?

35. What is the effect of expansionary fiscal policy on the interest rate?

36. What is the effect of contractionary monetary policy on interest rates?

37. What is the effect of contractionary fiscal policy on interest rates?

38. What is it called when an increase in government spending lowers investment?

39. What is it called when a decrease in government spending raises investment?

40. What is the effect of a decrease in taxes on investment?

41. What do you call the difference between the amount of money spent by the government and the amount of money taken in by the government?

42. What is the primary source of income for the government?

43. Which of the following is not a source of outflows for the government?

44. What is it called when the government collects more than it spends?

45. What is one reason that a budget deficit is harmful to the economy?

46. What is the key to the Ricardian view of the budget deficit?

47. Which of the following is not an economically viable view of the budget deficit?

48. Which of the following is not an economically viable view of the national debt?

49. When the government funds a budget deficit, what happens to the interest rate?

50. When the government funds a budget deficit, what happens to investment?

Next section Further Reading

Popular pages: Policy Debates

Take a Study Break