Skip to main content

Short questions


Question 1

Explain the possible effects of an increase in interest rates.

Question 2

Distinguish between the nominal rate of interest and the real rate of interest.

Question 3

Distinguish between monetary and fiscal policy.

Question 4

Explain the link between an increase in the money supply lead to and an increase in interest rates.

Question 5

Distinguish between tight (contractionary) and loose (expansionary) monetary policy

Question 6

Describe the process of quantitative easing.

Question 7

Describe the role of the Central Bank.

Question 8

Explain how a government can use monetary policy to expand aggregate demand.