"economics"exercise:Monetary and Fiscal Policy

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Questions 1:

A country implements policies that are expected to increase taxes by €100 million, increase government spending by €50 million, and reduce investments and private sector savings by €25 million each. As a result, the country’s current account balance is most likely to:

A、 decrease by €50 million.

B 、increase by €100 million.

C、 increase by €50 million.

Questions 2:

The tools used by central banks to implement monetary policy most likelyinclude:

A、 transfer payments.

B、 open market operations.

C、 raising or lowering income taxes

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