Real GDP ________________.

does not depend on the interest rate
is determined before the interest rate
is determined after the interest rate
and the interest rate are determined simultaneously

Crowding out is the tendency for expansionary fiscal policy to __________ the interest rate and __________ investment.

decrease; increase
decrease; decreases
increase; decrease
increase; increase

Crowding in is the tendency for _______ to increase investment.

contractionary fiscal policy
contractionary monetary policy
expansionary monetary policy
expansionary fiscal policy

International crowding out is the tendency for _____________________.

contractionary fiscal policy to decrease net exports
expansionary monetary policy to decrease exports
expansionary fiscal policy to decrease net exports
expansionary fiscal policy to decrease imports

An increase in the Canadian money supply ____________ the Canadian interest rate and the Canadian dollar __________.

raises; appreciates
raises; depreciates
lowers; appreciates
lowers; depreciates

A _______ is a macroeconomist who believes that government intervention is necessary to achieve economic stability.

civil servant
bureaucrat
Keynesian
monetarist

A _______ is a macroeconomist whose view of the how the economy functions is based theories most forcefully set out by Milton Friedman.

Keynesian
government economist
central banker
monetarist

In the short run, _______ real GDP and the price level.

contractionary monetary policy increases
contractionary fiscal and monetary policy increase
expansionary fiscal and monetary policy increase
expansionary fiscal policy increases

When the government and the Bank of Canada work together to achieve common goals, _________________ occurs.

over-stimulation of aggregate demand
over-stimulation of aggregate supply
policy augmentation
policy coordination

When the actions of the government make it difficult for the Bank of Canada to achieve its goals, _____________.

fewer people are willing to hold Canadian dollars
Canadian exports decrease
policy conflict occurs
tha Canadian dollar is unstable on foreign exchange markets

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