Question 1

According to monetarists:

Accepted Answer

A) if the money supply is expanding too much, lower rates of inflation will be likely. 
B) if the money supply is expanding too slowly, the unemployment rate may increase. 
C) if the money supply is expanding too slowly, prices may increase. 
D) if the money demand is expanding too much, lower rates of inflation will be likely. 
A) if the money supply is expanding too much, lower rates of inflation will be likely. 
B) if the money supply is expanding too slowly, the unemployment rate may increase. 
C) if the money supply is expanding too slowly, prices may increase. 
D) if the money demand is expanding too much, lower rates of inflation will be likely.

Question 2

The 'conditional-projection' approach used by the Australian government in monetary policy between 1976 and 1985 was based on:

Accepted Answer

A) the monetarist view of inflation. 
B) the Keynesian view of inflation. 
C) the fact that the demand for money was highly volatile. 
D) the fact that the velocity of money was highly volatile. 
E) none of these factors. 
A) the monetarist view of inflation. 
B) the Keynesian view of inflation. 
C) the fact that the demand for money was highly volatile. 
D) the fact that the velocity of money was highly volatile. 
E) none of these factors.

Question 3

According to the equation of exchange,if M = 500,P = 100 and Q = 10,the V is:

Accepted Answer

A) 2. 
B) 5. 
C) 10. 
D) 20. 
E) 2000. 
A) 2. 
B) 5. 
C) 10. 
D) 20. 
E) 2000.

Question 4

The goal of the monetary policy in Australia:

Accepted Answer

A) is to help low-income earners find a better job. 
B) is to provide everyone with a high income. 
C) is to keep the interest rates as high as possible. 
D) is to keep inflation between 2 and 3 per cent. 
A) is to help low-income earners find a better job. 
B) is to provide everyone with a high income. 
C) is to keep the interest rates as high as possible. 
D) is to keep inflation between 2 and 3 per cent.

According to monetarists:

The 'conditional-projection' approach used by the Australian government in monetary policy between 1976 and 1985 was based on:

According to the equation of exchange,if M = 500,P = 100 and Q = 10,the V is:

The goal of the monetary policy in Australia:

Thinking like an economist

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters

Exam 16: Macroeconomic policy I: monetary policy

According to monetarists:

The 'conditional-projection' approach used by the Australian government in monetary policy between 1976 and 1985 was based on:

According to the equation of exchange,if M = 500,P = 100 and Q = 10,the V is:

The goal of the monetary policy in Australia:

Thinking like an economist

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters