Exercise Chap 34. Student:
|
|
- Leslie Randall
- 6 years ago
- Views:
Transcription
1 Exercise Chap 34 Student: 1. A decrease in the interest rate will cause a(n): A. Increase in the transactions demand for money B. Decrease in the transactions demand for money C. Decrease in the amount of money held as an asset D. Increase in the amount of money held as an asset 2. Which varies directly with the interest rate? A. The opportunity cost of holding money B. The transactions demand for money C. The asset demand for money D. The level of investment 3. If the interest rate increases, there will be a(n): A. Decrease in the amount of money held as assets B. Decrease in the transactions demand for money C. Increase in the transactions demand for money D. Increase in the amount of money held as assets 4. If nominal GDP decreases this will: A. Increase the transactions demand and total demand for money B. Decrease the transactions demand and total demand for money C. Increase the transactions demand for money but decrease the total demand for money D. Decrease the transactions demand for money but increase the total demand for money
2 5. The fundamental objective of monetary policy is to assist the economy in achieving: A. A rapid pace of economic growth B. A money supply which is based on the gold standard C. A full-employment, noninflationary level of total output D. A balanced-budget consistent with full-employment 6. The tools of monetary policy for altering the reserves of commercial banks are the: A. Tax rate and level of government spending B. Consumer price index and unemployment rate C. Public debt, budget surplus, and budget deficit D. Discount rate, reserve ratio, and open-market operations 7. The Federal Reserve alters the amount of the nation's money supply by: A. Reducing the liabilities of the banking system B. Controlling the assets of the nation's largest banks C. Minting coins and printing currency that is distributed to banks D. Manipulating the size of excess reserves held by commercial banks 8. If the Fed buys government securities from commercial banks in the open market: A. The Fed gives the securities to the commercial banks, and they pay for them by writing checks that increase their reserves at the Fed B. The Fed gives the securities to the commercial banks, and they pay for them by writing checks that decrease their reserves at the Fed C. Commercial banks give the securities to the Fed, and it pays for them by increasing the reserves of commercial banks at the Fed D. Commercial banks give the securities to the Fed, and it pays for them by decreasing the reserves of commercial banks at the Fed
3 9. If the Fed sells government securities to the public in the open market,: A. The Fed gives the securities to the public; the public pays for the securities by writing checks that when cleared will increase commercial bank reserves at the Fed B. The Fed gives the securities to the public; the public pays for the securities by writing checks that when cleared will decrease commercial bank reserves at the Fed C. The public gives the securities to the Fed; the Fed pays for the securities by check, which when deposited at commercial banks will increase their reserves at the Fed D. The public gives the securities to the Fed; the Fed pays for the securities by check, which when deposited at commercial banks will decrease their reserves at the Fed 10. Assume the required reserve ratio is 20 percent. If the Federal Reserve buys $80 million in government securities from the public, then the money supply will immediately: A. Increase by $80 million, and the maximum money-lending potential of the commercial banking system will increase by $80 million B. Increase by $80 million, but the maximum money-lending potential of the commercial banking system will decrease by $80 million C. Increase by $80 million, and the maximum money-lending potential of the commercial banking system will increase by $400 million D. Decrease, because the securities are an asset to the commercial banks and a liability to the Federal Reserve 11. Which increases the excess reserves of commercial banks? A. The central banks sell bonds to the public B. The central banks sell bonds to commercial banks C. The central banks buy bonds from commercial banks D. The Board of Governors increases the discount rate 12. Raising the reserve ratio: A. Decreases the discount rate B. Increases the discount rate C. Decreases the amount of excess reserves banks must keep D. Changes excess reserves to required reserves
4 13. Assume the commercial banking system has checkable deposits of $20 billion and excess reserves of $2 billion at a time when the reserve ratio is 25 percent. If the reserve ratio is lowered to 20 percent, we can conclude that the: A. Bank now has excess reserves of $3.2 billion B. Bank now has neither an excess nor a deficiency of reserves C. Maximum money-creating potential of the banking system has been increased by $7 billion D. Board of Governors has decided that the economy is experiencing a high rate of inflation 14. A headline reads: "Fed Cuts the Federal Funds Rate by Half a Point." This suggests that: A. The prime interest rate will rise B. Monetary policy has eased C. Tax rates have been reduced D. The discount rate will rise 15. When the Federal Reserve uses open-market operations to raise the Federal funds rate several times over a year, it is pursuing: A. An expansionary money policy B. A prime interest rate policy C. A restrictive money policy D. A Taylor rule policy 16. In the chain of cause and effect between changes in the excess reserves of commercial banks and the resulting changes in output and employment in the economy: A. A decrease in aggregate demand will increase output B. An increase in the money supply will decrease the rate of interest C. A decrease in excess reserves will increase the money supply D. A decrease in the rate of interest will decrease aggregate demand
5 17. Which would provide the most accurate description of events when monetary authorities increase the size of commercial banks' excess reserves? A. A fall in interest rates decreases the money supply, causing an increase in investment spending, output, and employment B. A rise in interest rates increases the money supply, causing a decrease in investment spending, output, and employment C. The money supply is decreased, which increases the interest rate, and causes investment spending, output, and employment to decrease D. The money supply is increased, which decreases the interest rate, and causes investment spending, output, and employment to increase 18. The purpose of an expansionary money policy is to: A. Increase aggregate demand B. Decrease aggregate demand C. Increase investment demand D. Decrease investment demand 19. Suppose the economy is at full employment with a high inflation rate. Which combination of government policies is least likely to reduce the inflation rate? A. Buy government securities in the open market and increase taxes B. Buy government securities in the open market and decrease taxes C. Sell government securities in the open market and increase government spending D. Sell government securities in the open market and decrease government spending 20. Assume that the MPC is.75. If the Federal Reserve increases the money supply and investment spending increases by $8 billion, then aggregate demand is likely to: A. Increase by $6 billion B. Increase by $8 billion C. Increase by $32 billion D. Decrease by $8 billion
ECO 2013: Macroeconomics Valencia Community College
ECO 2013: Macroeconomics Valencia Community College Final Exam Fall 2008 1. Fiscal policy is carried out primarily by: A. the Federal government. B. state and local governments working together. C. state
More informationInterest Rates and Monetary Policy
14 Interest Rates and Monetary Policy 14-1 Chapter Objectives How the equilibrium interest rate is determined in the market for money. The goals and tools of monetary policy. The federal funds rate and
More informationBasic Finance. The Federal Reserve. An introduction to financial institutions, investments & Management Eleventh Edition.
Basic Finance The Federal Reserve 5 An introduction to financial institutions, investments & Management Eleventh Edition 1 U.S. Treasury Federal Reserve 2 Economy 3 U.S. Treasury Prints money IRS...collects
More informationPre-Test Chapter 9 ed17
Pre-Test Chapter 9 ed17 Multiple Choice Questions 1. Which of the following statements is incorrect? A. Given the economy's MPS, a $15 billion reduction in government spending will reduce the equilibrium
More informationThe Influence of Monetary and Fiscal Policy on Aggregate Demand
Chapter 32 The Influence of Monetary and Fiscal Policy on Aggregate Demand Test B 1. Of the effects that help explain why the U.S. aggregate demand curve slopes downward the a. wealth effect is most important
More informationMultiple Choice Identify the letter of the choice that best completes the statement or answers the question.
Chapter 16 review Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. Why does the Federal Reserve alter monetary policy? a. to regulate the
More informationThe Federal Reserve and Monetary Policy
The Federal Reserve and Monetary Policy Overview In this lesson, students will gain an overview of the Federal Reserve and monetary policy. Students will learn how the FED manipulates the money supply
More informationFinal Examination Semester 2 / Year 2012
Final Examination Semester 2 / Year 2012 COURSE : MACROECONOMICS COURSE CODE : ECON1013 TIME : 2 1/2 HOURS DEPARTMENT : MANAGEMENT LECTURER : CHING YANN PENG Student s ID : Batch No. : Notes to candidates:
More informationMacro Problem Set 3 Fall 2017
Macro Problem Set 3 Fall 2017 Directions: Choose the single best answer for each question. Answers should be turned in on the Scantron form at the beginning of class. True=A/False=B 15 points 1) Savings
More informationSection 5 - The Financial Sector
Section 5 - The Financial Sector Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Which of the following assets is the MOST liquid? A. checkable bank deposits
More informationThe Federal Reserve and Central Banking
ACTIVITY 4-6 eral Reserve and Central Banking eral Reserve System is the central bank of the United States. A central bank is an institution that oversees and regulates the banking system and controls
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Assignment 3 - Money and Banking - Econ 3381-01 - Fall 2015 Note: Submit your answers using Blackboard Learn. Notice that the order in which the answers appear [i.e., A), B), C), and D)] are different
More informationPractice Problems 30-32
Practice Problems 30-32 1. The budget balance is calculated as: A. T G TR B. T + G TR C. T G + TR D. T + G + TR E. TR T G 2. The government budget balance equals: A. Taxes + Government purchases + Government
More informationBudget Deficits and the Na*onal Debt
Debt v. Deficit Ques.ons for You What is the na*onal debt? What caused the na*onal debt? Where does the government get the money when it wants to spend more than it takes in? What is a budget deficit? What
More informationTHE FEDERAL RESERVE. and the Banking System. Functions. The FED is the central banking system of the U.S.
UNit 4.3 THE FEDERAL RESERVE and the Banking System The FED is the central banking system of the U.S. * Established 1913 * Governing Body board of governors * Presidentially-appointed Chairman JANET YELLEN
More information2. Suppose a family s annual disposable income is $8000 of which it saves $2000. (a) What is their APC?
REVIEW Chapters 10 and 13 Fiscal Policy 1. Complete the following table assuming that (a) MPS = 1/5, (b) there is no government and (c) all saving is personal saving. Level of output and income Consumption
More informationMacro Problem Set 3 Fall 2015
Macro Problem Set 3 Fall 2015 Directions: The True/False and Multiple Choice questions do not have to be turned in for credit. It would be foolish, however, not to spend a great deal of time working on
More informationThe Demand for Money p Explain the two reasons people demand to hold their wealth in the form on money.
Financial Sector Reading Guide Chapters 13, 14 and 15 Chapter 13: Money and Banking 1. Identify and describe the functions of money. 2. Define money supply and other financial assets. 3. Define and list
More information$300 billion $900 billion $20 billion $500 billion $200 billion $90 billion $0
1. When an asset is general! y accepted as a means of payment for goods and services: a. it must be backed by a specific commodity, such as gold or silver. b. it is also one of the best stores of wealth.
More informationPrinciple of Macroeconomics, Summer B Practice Exam
Principle of Macroeconomics, Summer B 2017 Practice Exam 1) If real GDP in a small country in 2015 is $8 billion and real GDP in the same country in 2016 is $8.3 billion, the growth rate of real GDP between
More informationMacroeconomics LESSON 4 ACTIVITY 38
Macroeconomics LESSON 4 ACTIVITY 38 The Federal Reserve: The Mechanics of Monetary Policy To manage the money supply, the Federal Reserve uses the tools of monetary policy to influence the quantity of
More informationPrinciples of Money, Banking, and Financial Markets, 12e (Ritter / Silber / Udell) Chapter 2 The Role of Money in the Macroeconomy
Principles of Money, Banking, and Financial Markets, 12e (Ritter / Silber / Udell) Chapter 2 The Role of Money in the Macroeconomy 2.1 Introducing Money 1) The most prominent role for money is to serve
More informationFinal Examination Semester 2 / Year 2012
Final Examination Semester 2 / Year 2012 COURSE : ECONOMICS COURSE CODE : ECON1023 TIME : 2 1/2 HOURS DEPARTMENT : IT AND JOURNALISM & COMMUNICATION STUDIES LECTURER : CHING YANN PENG Student s ID : Batch
More informationECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING Prof. Bill Even FORM 1. Directions
ECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING 2011 Prof. Bill Even FORM 1 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationECON 1010 Principles of Macroeconomics Solutions to the Final Exam
ECON 1010 Principles of Macroeconomics Solutions to the Final Exam Section A: Multiple Choice Questions. (120 points; 3 pts each) #1. The opportunity cost of something is: a) greater during periods of
More information5 AGGREGATE DEMAND AND INFLATION. Part Review. Reading Between the Lines WHERE WILL INTEREST RATES GO IN 2002?
Part Review 5 AGGREGATE DEMAND AND INFLATION Reading Between the Lines WHERE WILL INTEREST RATES GO IN 2002? On May 6, 2002 the FOMC met in Washington D.C. To combat the recession that started in 2001,
More informationChapter 14 Monetary Policy
Chapter Overview Chapter 14 Monetary Policy The objectives and the mechanics of monetary policy are covered in this chapter. It is organized around seven major topics: (1) interest rate determination;
More information1. When the Federal government uses taxation and spending actions to stimulate the economy it is conducting:
1. When the Federal government uses taxation and spending actions to stimulate the economy it is conducting: A. Fiscal policy B. Incomes policy C. Monetary policy D. Employment policy 2. When the Federal
More informationExam 3 ECON Thurs. Nov. 14, :30 a.m. Form A
Exam 3 ECON 2105 Thurs. Nov. 14, 2002 9:30 a.m. Name: ID #: Form A There are 30 multiple choice questions, worth 2.5 points each (for a total of 75 points). The short answer questions are worth 25 points.
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
HW 3 - Macro MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF
More informationCH Lecture. McGraw-Hill/Irwin Colander, Economics 1-1
CH 30+31 Lecture McGraw-Hill/Irwin Colander, Economics 1-1 Money 2 The Definition and Functions of Money Money is anything that is generally accepted as payment for goods or services Money is a highly
More informationMonetary Policy Tools?
EQ: What is the Federal Reserve System? In the U.S., the Federal Reserve System was established in 1913 to discharge the function of a central bank and provide a strengthened framework of regulatory control
More informationECO 209Y MACROECONOMIC THEORY AND POLICY
Department of Economics Prof. Gustavo Indart University of Toronto October 30, 2015 ECO 209Y MACROECONOMIC THEORY AND POLICY Term Test #1 LAST NAME FIRST NAME STUDENT NUMBER Indicate your section of the
More informationFall 2013 Unit 3 - MACROECONOMIC POLICY
Chapters 10 and 13 - Fiscal Policy Fall 2013 Unit 3 - MACROECONOMIC POLICY Reading Assignments: o Chapter 10: ALL o Chapter 13: ALL o PLUS Review Ch. 18 pp. 374-378 "Taxation and Aggregate Supply" Study
More information4. (Figure: Monetary Policy 1) If the money market is initially at E 2 and the central bank chooses
Name: Date: Use the following to answer questions 1-6. Figure: Monetary Policy 1 1. (Figure: Monetary Policy 1) If the money market is initially at E 1 and the central bank chooses to sell bonds, then:
More informationDokuz Eylül University Faculty of Business Department of Economics
Dokuz Eylül University Faculty of Business Department of Economics ECN 1002 PROBLEM SET III Q1) A link between the money market and the goods and services market exists through the impact of A) tax revenue
More informationUse the following to answer question 15: AE0 AE1. Real expenditures. Real income. Page 3
Chapter 10 1. An example of an autonomous consumption policy is a policy that A) lowers tax rates to stimulate additional consumer spending. B) makes credit more widely available to consumers in order
More informationThe Short-Run Tradeoff Between Inflation and Unemployment
Chapter 33 The Short-Run Tradeoff Between Inflation and Unemployment Test B 1. The short-run effects of an increase in government expenditures are shown in the graph as a. a movement from A to B and 1
More informationUnit 3 - MACROECONOMIC POLICY
Unit 3 - MACROECONOMIC POLICY Chapters 10 and 13 - Fiscal Policy Reading Assignments: o ALL of chapter 10 o ALL of chapter 13 o PLUS pp. 367-368 "Taxation and Aggregate Supply" Study Guide o Chapter 10:
More informationTHE FEDERAL RESERVE AND MONETARY POLICY Macroeconomics in Context (Goodwin, et al.)
Chapter 12 THE FEDERAL RESERVE AND MONETARY POLICY Macroeconomics in Context (Goodwin, et al.) Chapter Overview In this chapter, you will be introduced to a standard treatment of central banking and monetary
More informationUnit 4: Money and Monetary Policy
Unit 4: Money and Monetary Policy 1 Types of PERSONAL Investments Assets- Anything of monetary value owned by a person or business. 2 Bonds vs. Stocks Pretend you are going to start a lemonade stand. You
More informationECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING Prof. Bill Even FORM 3. Directions
1 ECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING 2013 Prof. Bill Even FORM 3 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationMidterm #2, version A, given Spring 2002 Note question #50 is from Chapter 11, which students are not responsible for on Exam 2 - Summer 02.
Midterm #2, version A, given Spring 2002 Note question #50 is from Chapter 11, which students are not responsible for on Exam 2 - Summer 02. Answers (if you think you see an error, please contact me ASAP.
More information1. STUDENTS WILL BE ABLE TO DEFINE AND EXPLAIN THE CONCEPT OF FISCAL POLICY
LIGHTHOUSE CPA SOCIAL SCIENCES DEPARTMENT AP ECONOMICS STUDY GUIDE # 18 - FISCAL POLICY & MANAGEMENT CHAPTER LEARNING OBJECTIVES STUDENTS WILL BE ABLE TO DEFINE AND EXPLAIN THE CONCEPT OF FISCAL POLICY
More informationEcon 202 Homework 5 Monetary Policy - 25 Points
1. Money serves all following economic functions EXCEPT: a. a source of economic wealth. b. a method of exchange. c. a standard of value. d. a store of value. 2. The term liquidity refers to a. the ability
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Questions of this SAMPLE exam were randomly chosen and may NOT be representative of the difficulty or focus of the actual examination. The professor did NOT review these questions. MULTIPLE CHOICE. Choose
More informationAQA Economics A-level
AQA Economics A-level Macroeconomics Topic 4: Financial Markets and Monetary Policy 4.3 Central banks and monetary policy Notes Monetary policy is used to control the money flow of the economy. This is
More informationCIE Economics A-level
CIE Economics A-level Topic 4: The Macroeconomy f) Money supply (theory) Notes Quantity theory of money (MV = PT) The Quantity Theory of Money states that there is inflation if the money supply increases
More informationECON2123-L5 Macroeconomics Mid-term 1 Part 1
ECON2123-L5 Macroeconomics Mid-term 1 Part 1 1. For this question, assume that 1980 is the base year. Given macroeconomic conditions in the United States over the past three decades, we know that A) nominal
More informationMACROECONOMICS - CLUTCH CH FISCAL POLICY.
!! www.clutchprep.com CONCEPT: INTRODUCTION TO FISCAL POLICY Fiscal Policy involves setting the level of and by Focus specifically on spending and taxes of government > Government spending is an important
More informationECON 120 -ESSENTIALS OF ECONOMICS
Name ECON 120 -ESSENTIALS OF ECONOMICS CH 24 THE GOVERNMENT AND FISCAL POLICY MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Fiscal policy refers
More informationDP/P = (DP/P) e t+1 + g [Y Y P ] + r. AD Curve (substitute MP Curve into IS Curve)
DP/P LRAS SRAS 1 DP/P = (DP/P) e t+1 + g [Y Y P ] + r AD1 Y P Y AD Curve (substitute MP Curve into IS Curve) Y = [C + I + G + NX d f MPC T] * 1 (d + x) * [r + l (DP/P) e t+1 ] 1 - [mpc(1-t)] 1 - [mpc(1-t)]
More informationChapter 14. Monetary Policy
Chapter 14 Monetary Policy Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 14 The goal of
More information5. Consider the T-account for Cambridge Mutual Savings Bank below. Which of the following transactions is recorded on this T-account?
PART I MULTIPLE CHOICE (50 points, 2 points each) - Clearly mark the best answer. 1. Banks use restrictive covenants to limit the problem of a) Adverse selection b) Compensating balances c) Excessive volatility
More informationMoney. What is Money? 3 Uses of Money #1 Medium of Exchange #2 Unit of Account. #3 Store of Value. 6 Characteristics of. Money.
What is Money? Suppose a generous relative gave you a gift of $1000 for your high school graduation. In a short paragraph outline what you would do with the money and the reason behind your decision. Can
More informationKOÇ UNIVERSITY ECON 202 Macroeconomics Fall Problem Set VI C = (Y T) I = 380 G = 400 T = 0.20Y Y = C + I + G.
KOÇ UNIVERSITY ECON 202 Macroeconomics Fall 2007 Problem Set VI 1. Consider the following model of an economy: C = 20 + 0.75(Y T) I = 380 G = 400 T = 0.20Y Y = C + I + G. (a) What is the value of the MPC
More informationTHE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND
21 THE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND LEARNING OBJECTIVES: By the end of this chapter, students should understand: the theory of liquidity preference as a short-run theory
More informationThe Federal Reserve System the Fed
The Federal Reserve System the Fed 12 Federal Reserve Districts Commercial banks banker Board of Governors Board of Governors 7 members appointed by president approved by Senate 14 yr. term chairman Janet
More informationEconomic Policy. Sherif Khalifa. Sherif Khalifa () Economic Policy 1 / 23
Sherif Khalifa Sherif Khalifa () Economic Policy 1 / 23 Monetary Policy Definition Monetary policy is the setting of the money supply by policy makers in the central bank. Money supply is determined by
More informationECON 3010 Intermediate Macroeconomics. Chapter 4 The Monetary System: What It Is and How It Works
ECON 3010 Intermediate Macroeconomics Chapter 4 The Monetary System: What It Is and How It Works Money: Definition Money is the stock of assets that can be readily used to make transactions. Money: Functions
More informationTHE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND
20 THE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND LEARNING OBJECTIVES: By the end of this chapter, students should understand: the theory of liquidity preference as a short-run theory
More informationOUTLINE November 8, Review: PPF & AD. Three types of policy. Government Spending 11/6/2017 5:34 PM
OUTLINE November 8, 2017 Interest rates & Net Exports, recap Fiscal Policy Effect on GDP in the short run Deficits and Debt Concerns regarding deficit spending PS4 due Mon/Tues Nov. 20/21 MT2 reflection
More informationEXAM 3: Version A. Econ 2203 Fall Instructions:
EXAM 3: Version A Econ 2203 Fall 2012 Instructions: 1. Write your name and the version (A or B) on your scantron. 2. Choose the best available answer and indicate your choice on your scantron sheet using
More informationECO202: PRINCIPLES OF MACROECONOMICS FIRST MIDTERM EXAM SPRING 2015 Prof. Bill Even FORM 4. Directions
ECO202: PRINCIPLES OF MACROECONOMICS FIRST MIDTERM EXAM SPRING 2015 Prof. Bill Even FORM 4 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationECO202: PRINCIPLES OF MACROECONOMICS FIRST MIDTERM EXAM SPRING 2015 Prof. Bill Even FORM 3. Directions
ECO202: PRINCIPLES OF MACROECONOMICS FIRST MIDTERM EXAM SPRING 2015 Prof. Bill Even FORM 3 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationECO202: PRINCIPLES OF MACROECONOMICS FIRST MIDTERM EXAM SPRING 2015 Prof. Bill Even FORM 1. Directions
ECO202: PRINCIPLES OF MACROECONOMICS FIRST MIDTERM EXAM SPRING 2015 Prof. Bill Even FORM 1 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationUnemployment that occurs at the natural rate of output is called:
ECON 1A Macroeconomics Lecture Notes: Chapter 11 - Aggregate Supply Aggregate Supply in the Short Run AS - relationship between the economy s price level and Assuming: Technology is fixed. Labor & AS:
More informationOUTLINE November 22, FFR & Other Interest Rates. Long-term Interest Rates. Historical pattern of interest rates 11/20/ :15 AM
OUTLINE November 22, 2016 The Fed & Monetary Policy, cont. Interest Rates & Yield Curve Zero Lower Bound Phillips Curve Why a Tradeoff? Shifts of Phillips Curve Comprehensive Essay prompt will be distributed
More informationAP Macroeconomics Syllabus Course Outline Required text: Economics: Principles, Problems, and Policies McConnel and Brue 15 th edition
AP Macroeconomics Mrs. Cook 1 st Period Room 210 AP Macroeconomics Syllabus Course Outline Required text: Economics: Principles, Problems, and Policies McConnel and Brue 15 th edition Unit One: Basic Economic
More informationECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING Prof. Bill Even FORM 1. Directions
ECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING 2014 Prof. Bill Even FORM 1 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING Prof. Bill Even FORM 2. Directions
ECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING 2014 Prof. Bill Even FORM 2 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationEcon 102 Final Exam Name ID Section Number
Econ 102 Final Exam Name ID Section Number 1. Assume that the economy is contracting and unemployment is rising. Which of the following would be a logical explanation for a sudden fall in the unemployment
More informationA) decrease; decrease B) decrease; not change C) decrease; increase D) increase; decrease E) not change; increase
Multiple Choice: On your answer sheet darken in the letter of your choice for each question. You should choose the suggested answer that BEST complete the statement or answers the question. 1) Suppose
More informationECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING 2009 Prof. Bill Even FORM 1. Directions
ECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING 2009 Prof. Bill Even FORM 1 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING 2009 Prof. Bill Even FORM 4. Directions
ECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING 2009 Prof. Bill Even FORM 4 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationMoney, Banking and the Federal Reserve
Money, Banking and the Federal Reserve What Is Money? Money is any asset that can easily be used to purchase goods and services. Fiat money : Money, such as paper currency, that is authorized by a central
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Econ 330 Spring 2016: EXAM 2 Name ID Section Number MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Banks hold capital because 1) A) higher capital
More information5. What is the Savings-Investment Spending Identity? Savings = Investment Spending for the economy as a whole
Unit 4 Test Review KEY Savings, Investment and the Financial System 1. What is a financial intermediary? Explain how each of the following fulfills that role: Financial Intermediary: Transforms funds into
More informationFinal Exam. Name: Student ID: Section:
Final Exam Name: Student ID: Section: Instructions: The exam consists of three parts: (1) 15 multiple choice questions; (2) three problems; and (3) one graphical question. Please answer all questions in
More informationMacro Economic questions Part III
Macro Economic questions Part III Question If U.S. real GDP for 2011 was $15.29 trillion. U.S. real GDP for 2010 was $15.03 trillion What was the economic growth from 2010 to 2011? Answer If U.S. real
More informationWorksheet 27.1: Monetary Policy Cause and Effect
Worksheet 27.1: Monetary Policy Cause and Effect 1. If the FED wants to increase the supply, determine the use of the three FED tools and explain how the supply increase would happen. Increase the supply
More informationInflation. Prof. Irina A. Telyukova UBC Economics 345 Fall 2008
Inflation Prof. Irina A. Telyukova UBC Economics 345 Fall 2008 Outline Inflation continually and rapidly rising price level. Inflation occurs whenever prices rise for any period of time, but the kind we
More informationChapter 11 Fiscal Policy, Deficits, and Debt
Chapter Overview Chapter 11 Fiscal Policy, Deficits, and Debt This chapter explores the tools of government stabilization policy in terms of the aggregate demandaggregate (AD-AS) model. Next, fiscal policy
More informationAGGREGATE DEMAND. 1. Keynes s Theory
AGGREGATE DEMAND 1. Keynes s Theory - John Maynard Keynes (1936) criticized classical theory for assuming that AS alone capital, labor, and technology determines national income proposed that low AD is
More informationHomework 4 of ETP Economics
Homework 4 of ETP Economics Winter Term 2014 Due: May 28 1.When the money market is drawn with the value of money on the vertical axis, if the price level is above the equilibrium level, there is an a.
More informationEcon 330 Exam 2 Name ID Section Number
Econ 330 Exam 2 Name ID Section Number MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) When financial institutions go on a lending spree and expand
More informationSuggested Solutions to Problem Set 7
Econ 154b Spring 2005 Question 1 Suggested Solutions to Problem Set 7 The IS curve is Y C d I d G 600 0.8ŸY"1000 "500r 400"500r 1000, so 0.2Y 1200"1000r. This is plotted below: Since= e 0, the nominal
More information14.02 Principles of Macroeconomics Fall 2004
14.02 Principles of Macroeconomics Fall 2004 Quiz 1 Thursday, October 7, 2004 7:30 PM 9 PM Please, answer the following questions. Write your answers directly on the quiz. You can achieve a total of 100
More information7. Refer to the above graph. It depicts an economy in the: A. Immediate short run B. Short run C. Immediate long run D. Long run
CHAPTER 29 1. When the price level decreases: A. The demand for money falls and the interest rate falls B. Holders of financial assets with fixed money values decrease their spending C. Holders of financial
More informationLesson 12 The Influence of Monetary and Fiscal Policy on Aggregate Demand
Lesson 12 The Influence of Monetary and Fiscal Policy on Aggregate Demand Henan University of Technology Sino-British College Transfer Abroad Undergraduate Programme 0 In this lesson, look for the answers
More informationRecaping the effects of both Fiscal policy and Monetary policy in the long run
Recaping the effects of both Fiscal policy and Monetary policy in the long run When the government ran a record surplus in 2000, many regarded it as a cause for celebration. Conversely, people usually
More informationCurrent Economic Conditions and Selected Forecasts
Order Code RL30329 Current Economic Conditions and Selected Forecasts Updated May 20, 2008 Gail E. Makinen Economic Policy Consultant Government and Finance Division Current Economic Conditions and Selected
More informationBanking Chapter 3 Study Guide
Name: Class: Date: Banking Chapter 3 Study Guide True/False Indicate whether the sentence or statement is true or false. 1. The flow of money has a direct effect on how the economy performs. 2. Liquidity
More informationThe Influence of Monetary and Fiscal Policy on Aggregate Demand P R I N C I P L E S O F. N. Gregory Mankiw. Introduction
C H A P T E R 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand P R I N C I P L E S O F Economics N. Gregory Mankiw Introduction This chapter focuses on the short-run effects of fiscal
More informationClass 5. The IS-LM model and Aggregate Demand
Class 5. The IS-LM model and Aggregate Demand 1. Use the Keynesian cross to predict the impact of: a) An increase in government purchases. b) An increase in taxes. c) An equal increase in government purchases
More informationEconomic 100B Macroeconomic Analysis Professor Steven Wood. Exam #2 ANSWERS
Name: SID: Discussion Section: GSI: Economic 100B Macroeconomic Analysis Professor Steven Wood Fall 2008 Exam #2 ANSWERS Please sign the following oath: The answers on this test are entirely my own work.
More informationThe Monetary System: What It Is and How It Works
4 The Monetary System: What It Is and How It Works CHAPTER 5 Inflation Modified by Ming Yi 2016 Worth Publishers, all rights reserved 3 IN THIS CHAPTER, YOU WILL LEARN: The definition, functions, and types
More informationMPC=0.7 Saved= $0.30 Consumed=$0.70 C=$233 When MPC decreases, Consumption decreases. Graphically, the slope of the line is less when MPC decreases.
1. Suppose a person works full time for a company. He earns Y dollars after taxes are taken out. Now suppose his consumption is measured by: 100+0.7Yd. I. Find the Marginal Propensity to Consumer. MPC=0.7
More informationPart I (45 points; Mark your answers in a SCANTRON)
Final Examination Name: ECON 4020/ SPRING 2005 Instructor: Dr. M. Nirei 1:30 3:20 pm, April 28, 2005 Part I (45 points; Mark your answers in a SCANTRON) (1) The GDP deflator is equal to: a. the ratio of
More informationAGEC 105 Test 3 Spring 2013
AGEC 105 Test 3 Spring 2013 Name There is only ONE correct answer per multiple choice question. Please put your answer on the attached sheet. DO NOT RIP THE ANSWER SHEET FROM THE TEST. 1. Assume a producer
More information