Country Level Economics: Policies, Institutions, and Macroeconomic Performance | Online Course Support

Which of the following statements is true about monetary and fiscal policies in developing countries?

9. Question 9 Which of the following statements is true about monetary and fiscal policies in developing countries? 1 point   Monetary policy is often procyclical while fiscal policy is…

Country Level Economics: Policies, Institutions, and Macroeconomic Performance | Online Course Support

Under optimal fiscal policy, changes in public debt at each time should strongly depend on:

2. Question 2 Under optimal fiscal policy, changes in public debt at each time should strongly depend on: 1 point     The existing levels of debt     The…

Country Level Economics: Policies, Institutions, and Macroeconomic Performance | Online Course Support

In oil exporting countries, where government budgets are significantly financed by oil revenues, the governments can often borrow easily during oil price booms and become credit rationed when oil prices drop very low. If the government does not have large savings, this phenomenon is likely to make its fiscal policy:

4. Question 4 In oil exporting countries, where government budgets are significantly financed by oil revenues, the governments can often borrow easily during oil price booms and become credit rationed…

Country Level Economics: Policies, Institutions, and Macroeconomic Performance | Online Course Support

Under optimal monetary policy, the central bank adjusts its policy based on anticipated rather than current inflation and output gaps because:

1. Question 1 Under optimal monetary policy, the central bank adjusts its policy based on anticipated rather than current inflation and output gaps because: 1 point   It takes time…

Country Level Economics: Policies, Institutions, and Macroeconomic Performance | Online Course Support

Under optimal fiscal policy, changes in public debt should be dependent on the existing levels of public debt and government size.

8. Question 8 Under optimal fiscal policy, changes in public debt should be dependent on the existing levels of public debt and government size. 1 point   True   False

Country Level Economics: Policies, Institutions, and Macroeconomic Performance | Online Course Support

When government expenditure is used for stabilization purposes, it makes the changes in public debt:

3. Question 3 When government expenditure is used for stabilization purposes, it makes the changes in public debt: 1 point   More countercyclical   Less countercyclical   More procyclical  …

Country Level Economics: Policies, Institutions, and Macroeconomic Performance | Online Course Support

The presence of automatic stabilizers like income taxes in the policy framework can help reduce discretion while maintaining some policy responsiveness to economic fluctuations.

10. Question 10 The presence of automatic stabilizers like income taxes in the policy framework can help reduce discretion while maintaining some policy responsiveness to economic fluctuations. 1 point  …

Country Level Economics: Policies, Institutions, and Macroeconomic Performance | Online Course Support

Which one of the following is a reason why actual fiscal policies in many countries deviate from the patterns deemed optimal?

5. Question 5 Which one of the following is a reason why actual fiscal policies in many countries deviate from the patterns deemed optimal? 1 point   Fiscal policy may…