Question 31 (1 point)

What is the effect of expansionary monetary policy?

Question 31 options:

a)	An increase in the money supply leading to a decrease in the interest rate, and an increase in the quantity of investment spending, causing an increase in GDP.

b)	An increase in the money supply leading to an increase in the interest rate, and a decrease in investment spending, causing a decrease in GDP.

c)	An increase in the money supply leading to an increase in the interest rate, and an increase in investment spending, causing an increase in GDP.

d)	An increase in the money demand leading to an increase in the interest rate, and an increase in investment spending, causing an increase in GDP.

Question 32 (1 point)

Fiscal policy is defined as changes in federal ________ and ________ to achieve macroeconomic objectives such as high rates of economic growth, and high employment.

Question 32 options:

a)	taxes; the money supply

b)	interest rates; money supply

c)	taxes; expenditures

d)	taxes; interest rates

Question 33 (1 point)

The most important function of the Bank of Canada is to regulate the money supply.

Question 33 options:

	a) True
	b) False

Question 34 (1 point)

Saved

An increase in individual income taxes ________ disposable income, which ________ spending (consumption).

Question 34 options:

a)	increases; decreases

b)	decreases; increases

c)	decreases; decreases

d)	increases; increases

Question 35 (1 point)

The interest rate can be thought of as which of the following?

Question 35 options:

a)	As the price of money.

b)	As a result of the level of investment.

c)	As a result of the level of saving.

d)	As a reflection of the supply of money.

Previous PageNext Page

Page 7 of 8

Submit Quiz21 of 40 questions saved