By controlling the monetary base economists mean ?

Related Mcqs:

1. A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?

   A. Supply-side economics
   B. neo-Keynesian economists
   C. rational-expectations economists.
   D. new classical economists.

2. A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are ?

   A. supply side economists
   B. neo-Keynesian economists
   C. rational -expectations economists
   D. New classical economists

3. Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?

   A. None of these answers
   B. Disagree because they have different scientific judgments
   C. really don’t disagree at all. It just appears that they disagree
   D. disagree because they have different values

4. Suppose two economists are arguing about policies that deal with unemployment One economist says the government should fight unemployment because it is the greatest social evil The other economist response Nonsense Inflation is the greatest social evil These economists ?

   A. really don’t disagree at all It just appears that they disagree.
   B. disagree because they have different values.
   C. none of these answers.
   D. disagree because they have different scientific judgments.

5. When economists say that people act rationally in their self interest, they mean that individuals _______?

   A. look for and pursue opportunities to increase their utility
   B. generally disregard the interests of others
   C. are mainly creatures of habit
   D. are unpredictable

   Submitted by: Mansoor Ul Haque

6. When economists talk about developing countries experiencing flight of capital they mean?

   A. money lent to the country being immediately invested abroad
   B. People investing their money in urban business rather than agriculture
   C. money moving around financial institutions rather than being invested in production
   D. people investing money abroad rather than in their own country

7. Economists use the term regulatory capture to mean a situation where the private sector firms being regulated ?

   A. Persuade the regulator to operate in the industry’s interests
   B. Persuade the regulator to act in the firms interests.
   C. Bribe the regulator.
   D. Persuade the government to change the regulatory regime.

8. The monetary base is ________ and _________?

   A. bank deposits, building society deposits
   B. Currency in circulation, banks cash reserves
   C. retail sight deposits building society deposits
   D. retail deposits, wholesale deposits

9. If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ?

   A. lender of less resort
   B. financial intermediation
   C. Open Market operations
   D. Financial regulation

10. A reduction in interest rates, causes an increases in the monetary base that results in an _________ in the availability of consumer credit and a ________ in the cost of consumer credit?

    A. reduction, increase
    B. reduction, reduction
    C. increase, reduction
    D. increase , increase