DP Economics Questionbank
2.5 Monetary policy
Description
[N/A]Directly related questions
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20N.2.HL.TZ0.1a.i:
Define the term interest rate indicated in bold in the text (paragraph [2]).
- 16N.1.HL.TZ0.3a: Explain how expansionary monetary policy might lead to a rise in inflation.
- 16N.1.SL.TZ0.4a: Explain what effect an increase in interest rates might have on unemployment.
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16N.1.HL.TZ0.3b:
Discuss the view that the most significant impact of high inflation in a country is a loss of export competitiveness.
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16N.2.SL.TZ0.1a.ii:
Define the term monetary policy indicated in bold in the text (paragraph [6]).
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16N.2.SL.TZ0.1c:
Using an AD/AS diagram, explain how “monetary policy tightening” may affect a country’s inflation rate (paragraph [6]).
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21M.1.SL.TZ2.4b:
Evaluate the effectiveness of monetary policy in reducing an economy’s rate of inflation.
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21M.1.SL.TZ2.4a:
Explain how expansionary monetary policy could be used to close a deflationary (recessionary) gap.
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21M.2.HL.TZ0.2a.ii:
Define the term monetary policy indicated in bold in the text (paragraph [2]).
- 17M.1.HL.TZ2.03a: Explain how equilibrium interest rates are determined in an economy.
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21N.3.HL.TZ0.3i:
Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.
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18N.2.SL.TZ0.4a.ii:
Define the term monetary policy indicated in bold in the text (paragraph [5]).
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19M.2.HL.TZ0.3a.i:
Define the term interest rates indicated in bold in the text (paragraph [5]).
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19M.2.HL.TZ0.2a.i:
List two functions of the central bank (paragraph [2]).
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19M.2.HL.TZ0.4b:
Using an AD/AS diagram, explain how expansionary monetary policy might lead to economic growth (paragraph [1]).
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19N.2.SL.TZ0.2b:
Using an AD/AS diagram, explain the likely impact on the Canadian economy of the increase in the official interest rate (paragraph [1]).
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19N.2.SL.TZ0.2a.i:
Outline two roles of a country’s central bank (paragraph [1]).
- 19N.1.SL.TZ0.3b: Evaluate the view that expansionary monetary policy is the most effective way to achieve economic...
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19N.3.HL.TZ0.2e:
State one reason why monetary policy is considered to have limited effectiveness in increasing aggregate demand if an economy is in a deep recession.
- 19N.3.HL.TZ0.2c: State two functions of a country’s central bank.
Sub sections and their related questions
Interest rates
- 17M.1.HL.TZ2.03a: Explain how equilibrium interest rates are determined in an economy.
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19M.2.HL.TZ0.2a.i:
List two functions of the central bank (paragraph [2]).
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19M.2.HL.TZ0.3a.i:
Define the term interest rates indicated in bold in the text (paragraph [5]).
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19N.2.SL.TZ0.2a.i:
Outline two roles of a country’s central bank (paragraph [1]).
- 19N.3.HL.TZ0.2c: State two functions of a country’s central bank.
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20N.2.HL.TZ0.1a.i:
Define the term interest rate indicated in bold in the text (paragraph [2]).
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21M.2.HL.TZ0.2a.ii:
Define the term monetary policy indicated in bold in the text (paragraph [2]).
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21N.3.HL.TZ0.3i:
Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.
The role of monetary policy
- 16N.1.SL.TZ0.4a: Explain what effect an increase in interest rates might have on unemployment.
- 16N.1.HL.TZ0.3a: Explain how expansionary monetary policy might lead to a rise in inflation.
-
16N.1.HL.TZ0.3b:
Discuss the view that the most significant impact of high inflation in a country is a loss of export competitiveness.
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16N.2.SL.TZ0.1a.ii:
Define the term monetary policy indicated in bold in the text (paragraph [6]).
-
16N.2.SL.TZ0.1c:
Using an AD/AS diagram, explain how “monetary policy tightening” may affect a country’s inflation rate (paragraph [6]).
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18N.2.SL.TZ0.4a.ii:
Define the term monetary policy indicated in bold in the text (paragraph [5]).
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19M.2.HL.TZ0.4b:
Using an AD/AS diagram, explain how expansionary monetary policy might lead to economic growth (paragraph [1]).
- 19N.1.SL.TZ0.3b: Evaluate the view that expansionary monetary policy is the most effective way to achieve economic...
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19N.2.SL.TZ0.2b:
Using an AD/AS diagram, explain the likely impact on the Canadian economy of the increase in the official interest rate (paragraph [1]).
-
19N.3.HL.TZ0.2e:
State one reason why monetary policy is considered to have limited effectiveness in increasing aggregate demand if an economy is in a deep recession.
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21M.1.SL.TZ2.4a:
Explain how expansionary monetary policy could be used to close a deflationary (recessionary) gap.
-
21M.1.SL.TZ2.4b:
Evaluate the effectiveness of monetary policy in reducing an economy’s rate of inflation.
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21N.3.HL.TZ0.3i:
Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.
