Economics - Monetary Policy MCQ Test 5

1. What does a 'hawkish' stance in monetary policy typically indicate?

2. In the context of monetary policy, what does the term 'Quantitative Easing' refer to?

3. What is the primary objective of 'Stabilization Policy'?

4. What tool does a central bank primarily use to conduct open market operations?

5. How does 'Deflation' impact an economy?

6. How does an increase in the money supply affect the value of a country's currency?

7. What is the impact of inflation on the economy?

8. What is the primary objective of 'Inflation Targeting' as a monetary policy framework?

9. What role does the Taylor Rule play in monetary policy?

10. What is 'Fiscal Dominance'?