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…
7. Question 7 Which one of the following is an example of a rule-based monetary policy? 1 point Currency board with a fixed exchange rate Fiscal golden rule…
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…
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…
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
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 …
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 …
6. Question 6 From the point of view of macroeconomic policymaking, separation of powers: 1 point Is undesirable because it always leads to a deadlock Is always desirable…
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…
6. Question 6 In 1997, East Asian economies faced a major financial crisis, which reduced their incomes and their demands for US exports. Suppose the Fed believed that the negative…
