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标题: Study Session 6 Quiz [打印本页]

作者: adehbone 时间: 2011-7-11 19:38 标题: Study Session 6 Quiz

Under what monetary and fiscal policies do you get the following:

1) Upward sloping yield curve
2) Downward sloping yield curve
3) Flat yield curve

And the bonus question. Which part of the yield curve does monetary policy control and which part does fiscal policy cover

作者: wake2000 时间: 2011-7-11 19:38

All from memory:

1. Loose, Loose
2. Restrictive, Restrictive
3. Restrictive, Loose

Fiscal - short end, Monetary - long end

Disclaimer: 1 and 2 may be reversed, not sure

NO EXCUSES

作者: PalacioHill 时间: 2011-7-11 19:38

1 - both expansive
2 - both contrative
3 - monetary contractive, fiscal expansive

Monetary - ST, fiscal LT

作者: justin88 时间: 2011-7-11 19:38

ST - Monetary
LT - Fiscal

Hence

1) Expansive Monetary (keep IR low) and Expansive Fiscal (Borrow more driving up LT rates)
2) Contractive Monetary (high IR) and Contractive Fiscal (borrow less so keep long end rates down)
3) ...... guess....... fiscal and monetary opposite?

@Kabaka - why did you say Contractive and Expansive for number 3?
what would the opposite - an expansive monetary and constrictive fiscal look like in your opinion?

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