A slightly larger effect than general transfers

The largest multiplier of all fiscal tools

Free CFA Economics Practice Questions & Answers

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Question 901

The effectiveness of monetary policy depends partly on:

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Question 902

If fiscal policy is easy and monetary policy is tight, interest rates:

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Question 903

If fiscal policy is tight and monetary policy is easy, interest rates:

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Question 904

Easy monetary + easy fiscal policy tends to:

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Question 905

Tight monetary + tight fiscal policy tends to:

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Question 906

Monetary policy is more effective when:

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Question 907

Fiscal policy is more effective when:

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Question 908

Monetary policy is less effective when:

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Question 909

Fiscal policy is less effective when:

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Question 910

A liquidity trap makes monetary policy ineffective because:

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Question 911

Deflation makes monetary policy difficult because:

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Question 912

A deflationary trap is characterized by:

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Question 913

Quantitative easing (QE) is used when:

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Question 914

A risk of QE is that:

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Question 915

A key limitation of monetary policy is that central banks cannot control:

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Question 916

A policy mix that encourages private investment typically involves:

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Question 917

Governments may increase spending on training and infrastructure when:

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Question 918

If government increases spending without raising taxes, fiscal policy becomes:

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Question 919

Combining expansionary fiscal policy with loose monetary policy risks:

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Question 920

The appropriate mix of monetary and fiscal policy is difficult to judge because:

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Question 921

Fiscal policy is harder to use quickly because:

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Question 922

It is politically easier to:

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Question 923

Fiscal tightening often occurs through:

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Question 924

Monetary policy decisions are often easier politically because:

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Question 925

Ricardian equivalence suggests tax cuts may fail to stimulate demand because:

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Question 926

IMF research on coordinated fiscal loosening found that:

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Question 927

Without monetary accommodation, social transfers have a smaller effect because:

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Question 928

Targeted social transfers have a larger effect than general transfers because:

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Question 929

Labor tax cuts have:

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Question 930

With monetary accommodation, fiscal multipliers:

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Free CFA Economics Practice Questions & Answers

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