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Questions › Macroeconomics › Fiscal and monetary policy effectiveness

Fiscal and monetary policy effectiveness: previous year questions

Asked 30 times in 7 exams across 14 years. Newest first.

Practise Fiscal and monetary policy effectiveness, easy to hard →

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  • Fiscal policy, stabilisers and Ricardian equivalence 17
  • Monetary policy rules and frameworks 4
  • Relative effectiveness of fiscal and monetary policy 9

Fiscal policy, stabilisers and Ricardian equivalence

The tools of fiscal policy, how the budget stabilises the economy on its own, and when deficits do not matter.

  1. CUET-PG 2026 Q30Public debt becomes unsustainable when
  2. GATE 2024 Q27Which one of the following measures in the Keynesian framework is adopted to tame inflation in an economy?
  3. UGC-NET 2023 Q90Given below are two statements, one labelled Assertion (A) and the other Reason (R). Assertion (A): According to the Domar condition of debt…
  4. CUET-PG 2022 Q49Which of the following is consistent with the idea of expansionary fiscal policy?
  5. CUET-PG 2022 Q68Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: There is automatic change in the…
  6. CUET-PG 2022 Q93Fiscal policy relates to the Government decision in respect of: A. Taxation B. Government spending C. Government borrowing D. Repo rate. Choose the…
  7. UoH 2020 Q22What is Ricardian equivalence proposition?
  8. CUET-PG 2019 Q69Which of the following is not part of fiscal policy?
  9. CUET-PG 2018 Q82Fiscal policy refers to
  10. JNU 2018 Q36Automatic fiscal stabilizers
  11. JNU 2018 Q39In an economy tending to produce below its maximum potential output in a year, the government steps up its expenditure by 10 percent but leaves all…
  12. UoH 2018 Q10The condition for sustainable public debt is
  13. DSE 2016 Q35According to the Ricardian equivalence proposition, a reduction in the current (lump-sum) taxation of household income:
  14. UoH 2011 Q2Which of the following is not involved with fiscal policy?
  15. UoH 2011 Q47Fiscal deficit in an economy is fundamentally sustainable as long as:
  16. DSE 2010 Q1In models where expectations adjust slowly, a progressive income tax schedule is
  17. UoH 2010 Q60What does not fall under instruments of fiscal policy:

Monetary policy rules and frameworks

Rules and frameworks used to run monetary policy.

  1. IIT JAM 2026 Q16The Taylor rule is used by the Central Banks mainly
  2. UGC-NET 2023 Q5Taylor's Rule tells:
  3. UGC-NET 2023 Q75Match List I with List II. List I A. Central Bank Loss Function B. Monetary Rule (MR) C. Phillips Curve (PC) D. Dynamic IS Curve. List II I. y_t = A…
  4. UoH 2021 Q90The type of monetary policy that is used in India, New Zealand, and the United Kingdom is:

Relative effectiveness of fiscal and monetary policy

When each policy works best and how they interact.

  1. UGC-NET 2025 Q50Increased fiscal deficit leads to: A. Increase in government spending B. Increase in domestic interest rate C. Fall in private investment D. Fall in…
  2. UGC-NET 2025 Q65Given below are two statements: one is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A): Deficit spending by the…
  3. UGC-NET 2024 Q12Arrange in descending order the extent of crowding out effects as under: A. Classical Macro model B. Complete Keynesian system assuming general…
  4. JNU 2021 Q83Consider two different economies, (i) a closed Keynesian liquidity trap economy, and (ii) an open economy with perfect capital mobility and a fixed…
  5. UoH 2019 Q63Which of the following policy choices represents a combination of fiscal and monetary policies designed to bring the economy out of a recession?
  6. JNU 2018 Q50Answer any one of the following in not more than 500 words: What policy options are left for a closed economy stuck in a liquidity trap? Explain.
  7. JNU 2017 Q50Answer any one of the following in not more than 500 words: (a) When President Trump of the United States says that he will create an economic…
  8. UoH 2013 Q18The potential aim of supply side policy is:
  9. UoH 2013 Q49Which of the following is not a 'crowding out' effect resulting from a fiscal expansion?