HFA TEST 2 Questions and Answers with Verified Solutions | Latest
2026 Update
Q: contractionary monetary policy
Answer:
to get low inflation, raises interest rates, sells bonds
Q: fiscal policy
Answer:
government spending and taxes
Q: expansionary fiscal policy
Answer:
to stimulate economic growth, lowering taxes, and increasing
government spending
Q: contractionary fiscal policy
Answer:
to slow down economic growth, increasing taxes, and lowering
government spending, used to combat inflation and debt
, HFA TEST 2 Questions and Answers with Verified Solutions | Latest
2026 Update
Q: John Maynard Keynes
Answer:
British economist who argued that for a nation to recovery fully from
a depression, the govt had to spend money to encourage investment and consumption
Q: neoclassical economics
Answer:
(they thought governments should
not take action in response to economic shocks)
Q: Milton Friedman and monetarists
Answer:
They believed that
governments should ensure steady growth of the money supply (through central
bank/fed
actions) but should otherwise be largely hands-off.
2026 Update
Q: contractionary monetary policy
Answer:
to get low inflation, raises interest rates, sells bonds
Q: fiscal policy
Answer:
government spending and taxes
Q: expansionary fiscal policy
Answer:
to stimulate economic growth, lowering taxes, and increasing
government spending
Q: contractionary fiscal policy
Answer:
to slow down economic growth, increasing taxes, and lowering
government spending, used to combat inflation and debt
, HFA TEST 2 Questions and Answers with Verified Solutions | Latest
2026 Update
Q: John Maynard Keynes
Answer:
British economist who argued that for a nation to recovery fully from
a depression, the govt had to spend money to encourage investment and consumption
Q: neoclassical economics
Answer:
(they thought governments should
not take action in response to economic shocks)
Q: Milton Friedman and monetarists
Answer:
They believed that
governments should ensure steady growth of the money supply (through central
bank/fed
actions) but should otherwise be largely hands-off.
