VEE MACRO 3.FINAL TEST 2026\2027.
The delay attributable to the time required for a government's fiscal policies to take effect after
being enacted is most accurately described as the:
A. action lag.
B. impact lag.
C. recognition lag.
B. impact lag.
If an expansionary monetary policy is combined with a contractionary fiscal policy it is most likely
that:
A. the private sector will expand as a share of GDP.
B. the public sector will expand as interest rates rise.
C. aggregate output will increase due to the larger share of government spending as a share of
GDP.
A. the private sector will expand as a share of GDP.
A customer deposits ¥100,000 into a bank with a reserve requirement of 20%. Assuming the
loaned money is redeposited and re-lent continuously throughout the banking system, the amount
of new money that can be created is closest to:
A ¥100,000.
B. ¥400,000.
C. ¥500,000.
B. ¥400,000.
According to the quantity theory of money, if money neutrality hold, an increase in money supply
will most likely impact:
A. real output.
B. the aggregate price level.
C. the velocity of circulation of money.
B. the aggregate price level.
In implementing monetary policy, the primary objective of central banks is most likely to:
A. maintain price stability.
The delay attributable to the time required for a government's fiscal policies to take effect after
being enacted is most accurately described as the:
A. action lag.
B. impact lag.
C. recognition lag.
B. impact lag.
If an expansionary monetary policy is combined with a contractionary fiscal policy it is most likely
that:
A. the private sector will expand as a share of GDP.
B. the public sector will expand as interest rates rise.
C. aggregate output will increase due to the larger share of government spending as a share of
GDP.
A. the private sector will expand as a share of GDP.
A customer deposits ¥100,000 into a bank with a reserve requirement of 20%. Assuming the
loaned money is redeposited and re-lent continuously throughout the banking system, the amount
of new money that can be created is closest to:
A ¥100,000.
B. ¥400,000.
C. ¥500,000.
B. ¥400,000.
According to the quantity theory of money, if money neutrality hold, an increase in money supply
will most likely impact:
A. real output.
B. the aggregate price level.
C. the velocity of circulation of money.
B. the aggregate price level.
In implementing monetary policy, the primary objective of central banks is most likely to:
A. maintain price stability.
