Monetary Policy and Macroeconomics

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary objective of monetary policy?

  • Maintaining price stability (correct)
  • Managing exchange rates
  • Controlling monetary aggregates
  • Stimulating economic activity

According to Keynes, what is the relationship between the precautionary motive and?

  • Consumption habits
  • Wealth accumulation
  • Interest rates (correct)
  • Income levels

What is the primary factor influencing the demand for money according to Friedman?

  • Economic preferences (correct)
  • Interest rates
  • Wealth distribution
  • Current income

What is the implication of the classical model being dichotomous?

<p>Monetary policy affects the general price level (A)</p> Signup and view all the answers

What is the consequence of a decrease in the money supply according to the quantitative theory of money?

<p>A decrease in the general price level (D)</p> Signup and view all the answers

What is the trade-off implied by the quantitative theory of money?

<p>Between inflation and unemployment rates (A)</p> Signup and view all the answers

Flashcards are hidden until you start studying

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser