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.Management Sciences
Category: Money, Interest Rates And Output
One of the transmission mechanisms of monetary policy is through consumer demand when interest rates ________ household wealth ________ and consumption _________?
0
A. rise; increase, increase
B. rise, falls, increase
C. rise, increase, falls
D. rise, falls, falls
An increase in the money supply aimed at increasing aggregate output is referred to as ?
A. contractionary fiscal policy
B. expansionary monetary policy
C. contractionary monetary policy
D. expansionary fiscal policy
Which of the following policy actions by a central bank is likely to increase the money supply ?
A. Increasing the refinancing rate
B. All of these will increase the money supply
C. Buying government bonds in open market operations
D. Increasing reserve requirements
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