economics - macro
Suppose first that the government choose to adopt a deflationary monetary policy.
A reduction in money supply will ___ interest rates. This will lead to an ___ of finance,
resulting in a ___ on the financial account of the balance of payments.
The effect on money supply is to ___ it.
This will ___ inflation.
A. Raise, Inflow, Surplus, increase, increase
B. Fall, outflow, deficit, reduce, reduce
C. Raise, inflow, deficit, reduce, reduce
D. Fall, outflow, surplus, increase, increase
Suppose now that the government choose to adopt a deflationary fiscal policy.
This will lead to a ___ in interest rates.
This will lead to an ___ of finance, resulting in a ___ on the financial account of the balance
of payments.
The effect on money supply is to ___ it.
This will ___ inflation
A. Raise, Inflow, Surplus, increase, increase
B. Fall, outflow, deficit, reduce, reduce
C. Raise, inflow, deficit, reduce, reduce
D. Fall, outflow, surplus, increase, increase
I'm practicing for an exam and I'm really conduced with these two questions.
A reduction in money supply will ___ interest rates. This will lead to an ___ of finance,
resulting in a ___ on the financial account of the balance of payments.
The effect on money supply is to ___ it.
This will ___ inflation.
A. Raise, Inflow, Surplus, increase, increase
B. Fall, outflow, deficit, reduce, reduce
C. Raise, inflow, deficit, reduce, reduce
D. Fall, outflow, surplus, increase, increase
Suppose now that the government choose to adopt a deflationary fiscal policy.
This will lead to a ___ in interest rates.
This will lead to an ___ of finance, resulting in a ___ on the financial account of the balance
of payments.
The effect on money supply is to ___ it.
This will ___ inflation
A. Raise, Inflow, Surplus, increase, increase
B. Fall, outflow, deficit, reduce, reduce
C. Raise, inflow, deficit, reduce, reduce
D. Fall, outflow, surplus, increase, increase
I'm practicing for an exam and I'm really conduced with these two questions.
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