Goodhart’s Law suggests that ?

Fiscal And Monetary Policy 23/04/2021

A. bad money drives out good
B. monetary policy can only be effective if it is a long-term policy
C. controlling one part of the money supply will merely result in that item becoming less important
D. the money supply must only expand at the rate of growth of real national income

Related Mcqs:

    Fiscal Policy refers to ?
    A. The government regulation of financial intermediaries B. The spending and taxing policies used by the government to influence the economy C. The actions of the central bank in controlling the money supply D. The government’s attitude to taxation...
    Time lags which often erode effectiveness of monetary and fiscal policy measures represent ?
    A. delays in the response of the economy is stabilization policy B. the foreign response to price changes C. the change in exports and imports prices D. the change in exchange rates...
    The response lag of stabilization policy represents ?
    A. the time that it takes for policy makers to recognize the existence of boom of bust B. the time needed for parliament to agree to a tax cut. C. the time that is necessary to put the desired policy into effect D. the time that it takes for the economy to adjust to the … The response lag of stabilization policy represents ?Read More...
    The budget deficit tends to decrease then ?
    A. GDP decrease rapidly B. GDP remains unchanged C. GDP decrease slightly D. GDP increase...
    The implementation lag for monetary policy is generally ?
    A. the same as it is for fiscal policy B. much shorter than it is for fiscal policy C. mush longer than it is for fiscal policy D. unrelated to central bank action...

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