Archives: Quiz
Business Development Supplement L If there is a surplus in the U.S. loanable funds
ANSWER: d DIFFICULTY: Moderate REFERENCES: Supply and Demand for Loanable Funds and for Foreign-Currency Exchange LEARNING OBJECTIVES: ECON.MANK.049 – Describe the loanable funds market. TOPICS: Loanable funds Open economy Equilibrium KEYWORDS: BLOOM’S: Application CUSTOM ID: 062.32.1 – MC – MANK08 […]
Business Development Supplement L There Surplus The Market For Loanable
1. In an open economy, national saving equals a. domestic investment plus net capital outflow. b. domestic investment minus net capital outflow. c. domestic investment. d. net capital outflow. ANSWER: a DIFFICULTY: Easy REFERENCES: Supply and Demand for Loanable Funds […]
Business Development Supplement L If the reserve ratio is 12.5 percent, then $2,000 of
ANSWER: b DIFFICULTY: Easy REFERENCES: Banks and the Money Supply LEARNING OBJECTIVES: ECON.MANK.288 – Given the reserve ratio, calculate the value of the money multiplier. TOPICS: Monetary policy Money multiplier KEYWORDS: BLOOM’S: Application CUSTOM ID: 054.29.3 – MC – MANK08 […]
Business Development Supplement L None of the above is correct
1. In a system of 100-percent-reserve banking, a. banks do not make loans. b. currency is the only form of money. c. deposits are banks’ only assets. d. All of the above are correct. ANSWER: a DIFFICULTY: Moderate REFERENCES: Banks […]
Business Development Chapter 36 The six debates over macroeconomic policy exist
1. The six debates over macroeconomic policy exist mostly because a. economists disagree over basic issues such as the importance of saving for economic growth. b. there are tradeoffs and people disagree about the best way to deal with them. […]
Business Development Chapter 36 Tax Laws Reformed Encourage Saving learning Objectives Econmank045
1. Higher saving is associated with a. a larger capital stock and a higher standard of living. b. a larger capital stock but not a higher standard of living. c. a higher standard of living but not a larger capital […]
Business Development Chapter 36 Which The Following Government Spending And Taxation
1. Government deficits mean that a. national saving is negative so public saving is negative. b. national saving is negative so public saving is lower than otherwise. c. public saving is negative so national saving is negative. d. public saving […]
Business Development Chapter 36 For The Fed Fully Eliminate The Costs
1. For the Fed to fully eliminate the costs of inflation, how low does the inflation rate need to be? a. 0 percent b. 3 percent c. 5 percent d. 6 percent ANSWER: a DIFFICULTY: Moderate REFERENCES: Should the Central […]
Business Development Chapter 36 A 1977 amendment to the Federal Reserve Act of 1913
1. The Federal Open Market Committee meets about a. every six days. b. every six weeks. c. every six months. d. every sixteen months. ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Should Monetary Policy Be Made by Rule Rather Than […]
Business Development Chapter 36 Suppose Tax Cut Affects
1. An increase in the money supply a. reduces interest rates and shifts aggregate demand to the right. b. reduces interest rates and shifts aggregate supply to the right c. raises interest rates and shifts aggregate demand to the right. […]
Business Development Chapter 36 The Fed Lowered Interest
1. Fluctuations in employment and output result from changes in a. aggregate demand only. b. aggregate supply only. c. aggregate demand and aggregate supply. d. neither aggregate demand nor aggregate supply. ANSWER: c DIFFICULTY: Easy REFERENCES: Should Monetary and Fiscal […]
Business Development Chapter 36 If the central bank has discretion to make policy
True / False 1. One prominent debate over macroeconomic policy centers on the question of whether monetary and fiscal policy should be used to try to stabilize the economy. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.044 […]
Business Development Chapter 36 Fiscal policy works with a lag primarily
Subjective Short Answer 1. Why is it desirable, if possible, to use policy to offset the effects of a decrease in aggregate demand? ANSWER: Because a decrease in aggregate demand wastes resources. Unemployment rises and factories are idle. POINTS: 1 […]
Business Development Chapter 35 The Unemployment Rate Would Fall Further below Its
Subjective Short Answer 1. As the aggregate demand curve shifts to the right, what happens to the price level and output? What do these changes imply happens to the inflation rate and the unemployment rate? ANSWER: The price level and […]
Business Development Chapter 35 If a central bank attempts to lower the inflation
CUSTOM ID: 047.35.4 – MC – MANK08 48. Refer to the Economy in 2008. The effects of increased prices of world commodities is shown by shifting a. aggregate demand to the right. b. aggregate demand to the left. c. aggregate […]
Business Development Chapter 35 Country Likely Have Higher
1. Soon after he became the chairman of the Federal Reserve System in 1979, Paul Volcker embarked on a course a. of accommodative monetary policy. b. of disinflation. c. that was designed to reduce the unemployment rate. d. that produced […]
Business Development Chapter 35 Phillips Curve Would Shift Left And Unemployment
c. reduces expected inflation so the short-run Phillips curve shifts left. d. None of the above is correct. ANSWER: a DIFFICULTY: Moderate REFERENCES: Shifts in the Phillips Curve: The Role of Expectations LEARNING OBJECTIVES: ECON.MANK.176 – Given a graph of […]
Business Development Chapter 35 The Long Run Increase The Money
Phillips curve KEYWORDS: BLOOM’S: Analysis CUSTOM ID: 062.35.2 – MC – MANK08 Figure 35-6 Use the graph below to answer the following questions. 63. Refer to Figure 35-6. Curve 1 is the a. long-run aggregate supply curve. b. short-run aggregate […]
Business Development Chapter 35 that the short-run Phillips curve was very steep
1. In 1968, economist Milton Friedman published a paper criticizing the Phillips curve on the grounds that a. it seemed to work for wages but not for inflation. b. monetary policy was ineffective in combating inflation. c. the Phillips curve […]
Business Development Chapter 35 When Aggregate Demand Shifts
49. Refer to Figure 35-2. If the economy starts at C and 1, then in the short run, an increase in the money supply growth rate moves the economy to a. A and 1 b. B and 2 c. C […]
Business Development Chapter 35 The Central Bank Increases The
1. The short-run relationship between inflation and unemployment is often called a. the Classical Dichotomy. b. Money Neutrality. c. the Phillips curve. d. None of the above is correct. ANSWER: c DIFFICULTY: Easy REFERENCES: The Phillips Curve LEARNING OBJECTIVES: ECON.MANK.102 […]
Business Development Chapter 35 Short Run Trade Off Between Inflation And
1. Closely watched indicators such as the inflation rate and unemployment are released each month by the a. Bureau of the Budget. b. Bureau of Labor Statistics. c. Department of the Treasury. d. President’s Council of Economic Advisors. ANSWER: b […]
Business Development Chapter 35 If the Fed were to increase the money supply
1. In the long run, the natural rate of unemployment depends primarily on the growth rate of the money supply. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.102 – Examine the trade–off between inflation and unemployment. TOPICS: […]
Business Development Chapter 34 Comprehension custom The Idea That
Subjective Short Answer 1. The Federal Reserve sets _____ policy, while the president and Congress set _____ policy. These two policies influence aggregate _____. ANSWER: monetary, fiscal, demand POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.080 – Determine the short-run and […]
Business Development Chapter 34 Monetary policy affects the economy with a long lag
TOPICS: Monetary policy Lags KEYWORDS: BLOOM’S: Knowledge CUSTOM ID: 040.34.3 – MC – MANK08 41. Most recessions and depressions a. are accurately forecasted. b. usually occur with ample advance warning. c. cause falling unemployment. d. occur with little advance warning. […]
Business Development Chapter 34 The Employment Act 1946 States That a The
1. The Employment Act of 1946 states that a. the Fed should use monetary policy only to control the rate of inflation. b. the government should promote full employment and production. c. the government should periodically increase the minimum wage […]
Business Development Chapter 34 The Larger The Multiplier Is The Less
KEYWORDS: BLOOM’S: Analysis CUSTOM ID: 094.34.2 – MC – MANK08 95. Suppose the MPC is 0.9. There are no crowding out or investment accelerator effects. If the government increases its expenditures by $30 billion, then by how much does aggregate […]
Business Development Chapter 34 Fiscal Policy Influences Aggregate Demand learning Objectives Econmank122
LEARNING OBJECTIVES: ECON.MANK.122 – Explain the multiplier effect of a change in government purchases. TOPICS: Fiscal policy Fiscal multipliers KEYWORDS: BLOOM’S: Application CUSTOM ID: 058.34.2 – MC – MANK08 59. If the marginal propensity to consume is 0.75, and there […]
Business Development Chapter 34 Billion the Extent Crowding
1. In the long run, fiscal policy influences a. saving, investment, and growth; in the short run, fiscal policy primarily influences technology and the production function. b. saving, investment, and growth; in the short run, fiscal policy primarily influences the […]
Business Development Chapter 34 If the Federal Reserve increases the money supply, then initially
DIFFICULTY: Moderate REFERENCES: How Monetary Policy Influences Aggregate Demand LEARNING OBJECTIVES: ECON.MANK.305 – Illustrate the short-run impact of a change in the price level under liquidity preference theory according to the model of aggregate demand and aggregate supply. TOPICS: Liquidity […]
Business Development Chapter 34 GDP Decrease The Price Level And Real
aggregate supply. TOPICS: Money Liquidity preference theory KEYWORDS: BLOOM’S: Analysis CUSTOM ID: 118.34.1 – MC – MANK08 119. According to liquidity preference theory, a decrease in the price level causes the interest rate to a. increase, which increases the quantity […]
Business Development Chapter 34 Explain How The Interest Rate Allocates Loanable
. 60. Refer to Figure 34-2. What is measured along the horizontal axis of the left-hand graph? a. nominal output b. real output c. the opportunity cost of holding money d. the quantity of money ANSWER: d DIFFICULTY: Easy REFERENCES: […]
Business Development Chapter 34 Expected Inflation Constant Then
1. The interest-rate effect a. depends on the idea that increases in interest rates increase the quantity of money demanded. b. depends on the idea that increases in interest rates increase the quantity of money supplied. c. is the most […]
Business Development Chapter 34 Monetary Policy Determined
1. Shifts in the aggregate-demand curve can cause fluctuations in a. neither the level of output nor the level of prices. b. the level of output, but not in the level of prices. c. the level of prices, but not […]
Business Development Chapter 34 Changes in monetary policy aimed at reducing
1. Both monetary policy and fiscal policy affect aggregate demand. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.080 – Determine the short-run and long-run effects of a macroeconomic event using the aggregate demand and aggregate supply model. […]
Business Development Chapter 33 Given Graph The Aggregate demand Curve
Subjective Short Answer 1. Explain how a recession differs from a depression. ANSWER: Recessions are relatively mild periods of declining real incomes and rising unemployment. Depressions are severe recessions. DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.186 – Given a scenario about an […]
Business Development Chapter 33 GDP Fall The Price Level Fall And
CUSTOM ID: 087.33.5 – MC – MANK08 Figure 33-11. 88. Refer to Figure 33–11. A movement from P1 and Y2, to P2 and Y1 would be consistent with a. a decrease in consumption expenditures. b. stagflation. c. sticky-wages. d. an […]
Business Development Chapter 33 The Fed conducted expansionary monetary policy
c. policymakers are unable to mitigate the severity of economic fluctuations. d. All of the above are correct. ANSWER: a DIFFICULTY: Easy REFERENCES: Two Causes of Economic Fluctuations LEARNING OBJECTIVES: ECON.MANK.169 – Given a graph of the aggregate-demand curve, determine […]
Business Development Chapter 33 Which The Following Lesson Concerning Shifts
1. If output is above its natural rate, then according to sticky-wage theory a. workers and firms will strike bargains for lower wages. In response to the lower wages firms will produce less at any given price level. b. workers […]
Business Development Chapter 33 Fed Decreases The Money Supply People Want
a. interest rates fall and so aggregate demand shifts right. b. interest rates fall and so aggregate demand shifts left. c. interest rates rise and so aggregate demand shifts right. d. interest rates rise and so aggregate demand shifts left. […]
Business Development Chapter 33 Other things the same, as the price level rises
TOPICS: Appreciation and depreciation International trade KEYWORDS: BLOOM’S: Knowledge CUSTOM ID: 063.33.3 – MC – MANK08 64. When the dollar depreciates, U.S. a. net exports rise, which increases the aggregate quantity of goods and services demanded. b. net exports rise, […]
Business Development Chapter 33 Other things the same, a fall in an economy’s overall
1. The aggregate demand and aggregate supply graph has the a. quantity of output on the horizontal axis. Output is best measured by real GDP. b. quantity of output on the horizontal axis. Output is best measured by nominal GDP. […]
Business Development Chapter 33 Explain How The Classical Dichotomy
1. The classical dichotomy refers to the separation of a. prices and nominal interest rates. b. taxes and government spending. c. decisions made by the public and decisions made by the government. d. real and nominal variables. ANSWER: d DIFFICULTY: […]
Business Development Chapter 33 Economic Fluctuations learning Objectives
1. Which of the following is correct? a. Short run fluctuations in economic activity happen only in developing countries. b. During economic contractions most firms experience rising profits. c. Recessions come at irregular intervals and are easy to predict. d. […]
Business Development Chapter 33 Given Scenario About
True / False 1. According to classical macroeconomic theory, changes in the money supply change nominal but not real variables. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.112 – Explain how the classical dichotomy relates to money […]
Business Development Chapter 32 Us Shoe Industry And Unfair Labor Practices
Subjective Short Answer 1. What is the source of the supply of loanable funds in the open-economy macroeconomic model? ANSWER: national saving DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.049 – Describe the loanable funds market. TOPICS: Loanable funds National saving KEYWORDS: BLOOM’S: […]
Business Development Chapter 32 None The Above Will Increase Exports answer difficulty difficult reference show Policies
149. If after a country experiences capital flight, people become more confident about the safety of its assets, then in that country a. the real exchange rate and the real interest rate will rise. b. the real exchange rate will […]
Business Development Chapter 32 Us Demand For Loanable Funds And Us
a. the movement of workers across international borders in response to exchange rate changes. b. the movement of funds between financial intermediaries when interest rates change. c. the ability of foreign direct investment to lift a country out of poverty. […]
Business Development Chapter 32 Learning Objectives Econmank 050 Describe The Market For
LEARNING OBJECTIVES: ECON.MANK.050 – Describe the market for foreign-currency exchange. TOPICS: Exchange rate determination Loanable funds Investment KEYWORDS: BLOOM’S: Analysis CUSTOM ID: 058.32.3 – MC – MANK08 59. Refer to Figure 32–4. Suppose that the government goes from a budget […]
Business Development Chapter 32 Cengage Learning Powered Cognero page 10d The Interest
1. If a country raises its budget deficit, then its a. net capital outflow and net exports rise. b. net capital outflow rises and net exports fall. c. net capital outflow falls and net exports rise. d. net capital outflow […]