Quiz #551

• 1. The price at which the central bank provides reserves to the commercial banks is restricted by its target monetary policy rate.
• False
• True
• 2. For a country facing strong terms and trade and an appreciating currency, a cut in wages and the rate of inflation will restore international competitiveness.
• False
• True
• 3. If the fiscal deficit rises then government policy is becoming more expansionary.
• False
• True

Quiz #551 answers

• 1. The price at which the central bank provides reserves to the commercial banks is restricted by its target monetary policy rate.

Answer: True

• 2. For a country facing strong terms and trade and an appreciating currency, a cut in wages and the rate of inflation will restore international competitiveness.

Answer: False

• 3. If the fiscal deficit rises then government policy is becoming more expansionary.

Answer: False