Scribd
Upload
19 views2 pages

8 (11

The document presents a series of True/False questions related to macroeconomic policies, fiscal policy, monetary policy, and exchange rate systems. It confirms that macroeconomic policies aim for price stability and full employment, while fiscal policy includes both taxation and government spending. Additionally, it clarifies the nature of transfer payments, the effects of expansionary and contractionary policies, and the implications of minimum wage laws and fixed exchange rates.

Uploaded by

Tilahun Wami
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
19 views2 pages

8 (11

The document presents a series of True/False questions related to macroeconomic policies, fiscal policy, monetary policy, and exchange rate systems. It confirms that macroeconomic policies aim for price stability and full employment, while fiscal policy includes both taxation and government spending. Additionally, it clarifies the nature of transfer payments, the effects of expansionary and contractionary policies, and the implications of minimum wage laws and fixed exchange rates.

Uploaded by

Tilahun Wami
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 2

Here are 8 True/False questions, one from each major section of the text:

---

1. Macroeconomic policies aim to achieve price stability, full employment, and a healthy balance of
payments.

Answer: True

2. Fiscal policy includes only taxation and does not involve government spending.

Answer: False

3. Transfer payments, such as unemployment benefits, require goods or services in return.

Answer: False

4. Expansionary fiscal policy involves reducing tax rates and increasing government spending to boost
aggregate demand.

Answer: True

5. Monetary policy tools include open market operations, the discount rate, and the required reserve
ratio.

Answer: True
6. Contractionary monetary policy aims to increase the money supply to control inflation.

Answer: False

7. Minimum wage laws are designed to set a price ceiling on hourly wages.

Answer: False

8. A fixed exchange rate system provides certainty in trade but limits the government's ability to
respond to economic shocks.

Answer: True

---

Let me know if you’d like more questions or further assistance!

You might also like