, Question 1
Correct
Which of the following statements is correct?
Mark 1.00 out of
1.00
a. Restrictive fiscal and monetary policies are applied V Flag question
during periods of economic growth (boom).
b. Fiscal policy entails changes in the interest rate.
c. The impact lag is longer for fiscal policy than for
monetary policy.
d. The decision lag is shorter for fiscal policy than for
monetary policy.
Refer to section 9.3 of the prescribed textbook.
Question 2
Correct
Suppose that the central bank reduces the repo rate. What
Mark 1.00 out of
will happen in the AD-AS model?
1.00
V Flag question
(a) Investment decreases
(b) Aggregate demand increases
(c) Consumption increases
(d) Income decreases
(e) Prices increase
a. Only b, c and e are correct.
b. Only a, d and e are correct.
c. All a, b, c, d and e are correct.
d. Only a, b, c and d are correct.
e. Only a and d are correct.
Correct
Which of the following statements is correct?
Mark 1.00 out of
1.00
a. Restrictive fiscal and monetary policies are applied V Flag question
during periods of economic growth (boom).
b. Fiscal policy entails changes in the interest rate.
c. The impact lag is longer for fiscal policy than for
monetary policy.
d. The decision lag is shorter for fiscal policy than for
monetary policy.
Refer to section 9.3 of the prescribed textbook.
Question 2
Correct
Suppose that the central bank reduces the repo rate. What
Mark 1.00 out of
will happen in the AD-AS model?
1.00
V Flag question
(a) Investment decreases
(b) Aggregate demand increases
(c) Consumption increases
(d) Income decreases
(e) Prices increase
a. Only b, c and e are correct.
b. Only a, d and e are correct.
c. All a, b, c, d and e are correct.
d. Only a, b, c and d are correct.
e. Only a and d are correct.
