Fiscal And Monetary Policy

A. credit rationing
B. government borrowing drives up interest rates
C. Bank of England controls on commercial bank lending
D. what the government borrows cannot be used for private investment

A. Margaret Thatcher
B. Ronald Reagan
C. Milton Friedman
D. John Maynard Keynes

A. Money multiplier
B. liquidity ratio
C. bank’s line of credit
D. required reserve ratio

A. the time that it takes for policy makers to recognize the existence of boom of bust
B. the time needed for parliament to agree to a tax cut.
C. the time that is necessary to put the desired policy into effect
D. the time that it takes for the economy to adjust to the new conditions after a new policy has been implemented

A. delays in the response of the economy is stabilization policy
B. the foreign response to price changes
C. the change in exports and imports prices
D. the change in exchange rates

A. debt burden
B. the Laffer curves
C. bracket creep
D. fiscal drag

A. increase: increase
B. decrease; decrease
C. increase; decrease
D. decrease; increase

A. The government regulation of financial intermediaries
B. The spending and taxing policies used by the government to influence the economy
C. The actions of the central bank in controlling the money supply
D. The government’s attitude to taxation