Time lags which often erode effectiveness of monetary and fiscal policy measures represent ?

Related Mcqs:

By controlling the monetary base economists mean ?

A. making banks keep a certain % of their assets as M0 B. controlling the money multiplier C. restricting the amount of cash in circulation D. not allowing commercial banks to issue notes and coins...

Fiscal drag occurs when ?

A. Tax bands do not increase with inflation B. Tax rates move inversely with inflation C. Government spending falls to reduce aggregate demand D. Tax banks increase with inflation...

Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000 ?

A. Rs 50000 B. 20% C. 25% D. Rs 10000...

As the required reserve ratio is decreased the money multiplier ?

A. could either increase or decrease B. decrease C. increase D. remain the same, as long as bank hold no excess reserves...

Goodhart’s Law suggests that ?

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...