Real GDP ________________.

is determined after the interest rate
is determined before the interest rate
does not depend on 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
increase; increase
decrease; decrease
increase; decrease

Crowding in is the tendency for _______ to increase investment.

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

International crowding out is the tendency for _____________________.

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

An increase in the UK money supply ____________ the UK interest rate and the British pound __________.

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

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

Keynesian
civil servant
monetarist
bureaucrat

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

central banker
Keynesian
government economist
monetarist

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

expansionary fiscal policy but not expansionary monetary policy increases
contractionary monetary policy but not contractionary fiscal policy increases
contractionary fiscal and monetary policy increase
expansionary fiscal and monetary policy increase

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

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

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

tha British pound is unstable on foreign exchange markets
fewer people are willing to hold UK pounds
UK exports decrease
policy conflict occurs