Podcast
Questions and Answers
Which of the following is a feature of quantitative easing?
Which of the following is a feature of quantitative easing?
- The central bank raises interest rates
- The central bank increases inflation expectations
- The central bank purchases government or private securities (correct)
- The central bank reduces expenditures
What is the ultimate aim of quantitative easing?
What is the ultimate aim of quantitative easing?
- To increase cash balances
- To reduce interest rates
- To fund the budget deficit
- To stimulate private sector demand (correct)
What is the concern of many economists regarding the central bank purchasing government securities on a large scale?
What is the concern of many economists regarding the central bank purchasing government securities on a large scale?
- It reduces cash balances
- It raises inflation expectations
- It increases interest rates
- It monetizes the government deficit (correct)
What does the IMF model suggest happens when governments run persistently high budget deficits?
What does the IMF model suggest happens when governments run persistently high budget deficits?
What effect does a lack of commitment to fiscal discipline have on inflation expectations and long-term interest rates?
What effect does a lack of commitment to fiscal discipline have on inflation expectations and long-term interest rates?
What is the relationship between fiscal stimulus and demand in the scenario of zero interest rates and deflation?
What is the relationship between fiscal stimulus and demand in the scenario of zero interest rates and deflation?
What is the role of quantitative easing in major economies following the 2008-2009 Global Financial Crisis?
What is the role of quantitative easing in major economies following the 2008-2009 Global Financial Crisis?
What is the fear of many economists regarding the so-called printing of money?
What is the fear of many economists regarding the so-called printing of money?
What does the IMF model imply about the relationship between budget deficits and real interest rates?
What does the IMF model imply about the relationship between budget deficits and real interest rates?
What is the conventional inflation target of central banks, such as the Bank of England?
What is the conventional inflation target of central banks, such as the Bank of England?
Which of the following is true about fiscal policy?
Which of the following is true about fiscal policy?
What is the difference between government revenues and expenditures over a period of time called?
What is the difference between government revenues and expenditures over a period of time called?
Which of the following is NOT a fiscal tool available to a government?
Which of the following is NOT a fiscal tool available to a government?
What does the structural budget deficit indicate about a government's fiscal stance?
What does the structural budget deficit indicate about a government's fiscal stance?
If the ratio of government debt to GDP rose by 10 percentage points permanently, what would happen to world real interest rates?
If the ratio of government debt to GDP rose by 10 percentage points permanently, what would happen to world real interest rates?
What does monetary policy refer to?
What does monetary policy refer to?
How does fiscal policy affect the overall level of aggregate demand?
How does fiscal policy affect the overall level of aggregate demand?
What is the term for the ratio of government debt to GDP?
What is the term for the ratio of government debt to GDP?
What would be the impact on world GDP if world real interest rates rise by 0.14 percent?
What would be the impact on world GDP if world real interest rates rise by 0.14 percent?
What does the term 'fiscal stance' refer to?
What does the term 'fiscal stance' refer to?
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