AP Macroeconomics Practice Test: Monetary Policy

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Question 15 questions

Time 18 minutes

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1. The Federal Open Market Committee

2. According to Classical economic theory, a decrease in the money supply would

3. According to monetarist analysis, a decrease in the money supply would

4. According to Keynesian analysis, a decrease in the money supply would

5. In the equation of exchange

6. The velocity of money

7. In the equation of exchange, if V and Q are constant, then

8. In the United States over the years, V and Q

9. According to Monetarist theory, when the money supply is changed, the economy is affected

10. According to Keynesian theory, a decrease in the money supply would

11. Which of the following could cause the aggregate demand curve to shift to the left?

12. According to Monetarist theory,

13. According to Keynesian theory,

14. Milton Friedman

15. Monetarists believe that V and Q are