Answer to Question #125764 in Macroeconomics for Oko jen

Question

21. Open Market Operations, Reserve Ratio, Discount Rate and Stabilization Securities are …. (a) Qualitative measures of monetary policy (b) Quantitative measures of monetary policy (c) Fiscal policy measures (d) None of the above.
22. If the Central Bank reduces the bank rate, this will cause …… (a) commercial banks to reduce lending (b) commercial banks to merge (c) money supply to increase (d) money supply to reduce
23. A change in the real value of wealth that causes spending to change when the level of prices changes is known as: (a) interest rate effect (b) International-Substitution effect (c) Consumption effect (d) Real Balance effect
24. If the economy is in an inflationary period, what action would Fiscal authority most likely take? (a) Decrease taxes (b) Decrease the discount rate (c) Increase government spending (d) Increase taxes

Answer 1

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