Multiple choice - activist stabilization policy

Reference no: EM1373275

Question1: If monetary policy is used to control real GDP then fiscal policy is a major determinant of

Interest rates and the foreign trade deficit
Unemployment and the foreign exchange rate
Interest rates and economic growth
None of the above

Question2: The increase of the real money supply by 10 % by the Federal Reserve when the unemployment rate rises by 1% is an example of

the utilization of feedback policy rule
the conduct of procyclical monetary policy
the conduct of nondiscretionary fiscal policy
the utilization of rigid policy rule

Question3: Non-activists

argue for a constant-growth rate rule for the money supply
argue that more unemployment now may prevent a lot more unemployment in the future
distrust the ability of the political process to formulate sensible economic policy
All of the above

Reference no: EM1373275

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