Question : Macroeconomic policy tools include:
Option 1: Individual tax rates
Option 2: Consumer demand curves
Option 3: Central bank interest rates
Option 4: Price elasticity of supply
Correct Answer: Central bank interest rates
Solution : The correct answer is (c) Central bank interest rates.
Macroeconomic policy refers to the use of various tools and strategies by policymakers to influence and manage the overall performance of the economy. Central banks, as part of their monetary policy, often use interest rates to influence economic conditions. By adjusting interest rates, central banks can impact borrowing costs, investment levels, consumption, and overall economic activity. Lowering interest rates tends to stimulate borrowing, investment, and consumer spending, thereby promoting economic growth. Conversely, raising interest rates can cool down an overheating economy and control inflation.
Question : Which one is not the type of elasticity of demand?
Option 1: Price elasticity of demand
Option 2: Income elasticity of demand
Option 3: Cross elasticity of demand
Option 4: Consumer elasticity of demand
Question : Which of the following is a macroeconomic indicator?
Option 1: Consumer price index (CPI)
Option 2: Price elasticity of demand
Option 3: Market equilibrium price
Option 4: Marginal utility
Question : The elasticity of demand for price is:
Option 1: Elasticity = Percentage change in demand/Percentage change in time
Option 2: Elasticity = Percentage change in price/Percentage change in demand
Option 3: Elasticity = Percentage change in demand/Percentage change in supply
Option 4: Elasticity = Percentage change in supply/Percentage change in price
Question : Fiscal Policy is formulated by_______ It aims to bring changes in aggregate demand by altering the ________
Option 1: Central Government, Purchasing Power
Option 2: Central Bank, Purchasing Power
Option 3: Central Government, Money Supply
Option 4: Central Bank, Money Supply
Question : The Monetary Policy Committee maintained a hawkish stance on the interest rates. In this context, the 'hawkish stance' means_____.
Option 1: interest rates were decreased
Option 2: interest rates were increased
Option 3: interest rates were kept unchanged
Option 4: money supply was increased
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