Quiz
Practice Econ 4
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Fragen in diesem Quiz (24)
1Which of the following rates does the Fed actually set?
- Athe Federal Funds rate
- Bthe discount rate
- Cthe market interest rates
- Dall of these rates
2M1 includes
- ACurrency, Checkable Deposits, Demand deposits
- BCurrency, Federal Reserves, Checkable deposits
- CCheckable Deposits only
- DCurrency, Checkable Deposits, Small time deposits
3Why does so much U.S. currency circulate in other countries?
- ASeveral countries use the U.S. dollar as their official currency.
- BThe U.S. dollar is frequently used in drug trafficking.
- CDollars hold their value in unstable countries.
- DAll of the above
4In the United States, the amount of cash per capita is about $3,000. This figure
- Ashows how much currency each American holds in their checking accounts.
- Bmisrepresents actual currency holdings in the United States because a lot of dollars are held outside the country.
- Caccurately represents the size of the underground economy in the United States
- Dshows how much the world depends on the U.S. monetary system.
5The Federal Reserve's major tools to control the money supply are
I. open market operations.
II. discount rate lending and the term auction facility.
III. required reserve ratio and payment of interest on reserves.
IV. federal funds lending- AI only
- BI, II
- CI, II, III
- DI, II, III, IV
6The Federal Funds rate is the interest rate charged on a(n)
- Aovernight loan from one bank to another.
- Blow interest loan from the Federal Reserve to a bank.
- Cloan from the Federal Reserve to a bank.
- Dlong-term loan from one bank to another.
7Why is the SRAS curve steeper above its intersection with the Solow growth curve?
- AWages are stickier in the upward direction.
- BWages are less sticky in the upward direction
- C Lower inflation will lead to faster growth.
- DEmployees become less motivated to work during times of unexpected inflation.
8According to the quantity theory of money, an increase in money supply causes an increase in
- Aprices
- Bproduction
- Cvelocity of money
- Dreal GDP
9The short-run aggregate supply curve shows a relationship between the real growth rate and the
- Aactual inflation rate
- Bexpected inflation rate
- Clong-run inflation rate
- Dnone of the above
10How has the role of agricultural production changed in the Indian economy?
- A It is now only 1 percent of GDP.
- BIt has fallen to about 20 percent of GDP due to economic diversification.
- C It has remained about 40 percent of GDP, but has doubled in yield.
- DIt has become a greater part of GDP, due to technological advances.
11Imagine that a government starts out with the budget surplus. If in the next period the government temporarily runs a budget deficit, what would you expect to happen to aggregate demand?
- AAD would increase
- BAD would decrease
- CAD would remain the same
- DAD would lie on the Solow growth curve
12In the AD and SRAS model, changes in the growth rate of C, I, G, and NX tend to be changes in:
- Amoney velocity
- Bmoney supply
- Cprices
- Dall of the above
13The Solow growth rate is the rate of economic growth that occurs when
- Ainflation is moderate
- Bwages and prices are flexible
- Cwages and prices are sticky
- Dthe money supply is growing
14An increase in _______ will shift the SRAS curve
- Aactual inflation, but not expected inflation
- Bexpected inflation, but not actual inflation
- Cboth expected and actual inflation
- Dneither expected nor actual inflation
15Suppose both the growth rate of the money supply and the velocity of money are fixed, then an increase in the growth rate of exports will cause
- Aa shift of the dynamic AD curve to the right.
- Ba shift of the dynamic AD curve to the left.
- Ca downward movement along the dynamic AD curve.
- Dan upward movement along the dynamic AD curve.
16The aggregate demand curve shows all the combinations of ______ that are consistent with a specified rate of spending growth.
- A inflation and real GDP growth rates
- Bemployment rates and price levels
- C production shocks and flexible price
- Dmoney velocity and money supply
17n the basic
AD
and Solow growth curve model, shocks to aggregate demand always cause
I. changes in real GDP.
II. changes in inflation.
III. changes in spending growth.- AI only
- BI, II
- CII only
- DI, II, III
18The Solow growth curve is represented by a vertical line at the Solow growth rate because
I. it does not depend on the rate of inflation.
II. there is an underlying assumption of strong money neutrality.
III. it does not depend on the stock of factors of production- AI only
- BI, II
- CI, III
- DI, II, III
19Which of the following is a shock that could shift the Solow growth curve?
- Aproductivity shock
- Bnegative supply shock
- Creal shock
- Dall of the above
20The average annual rate of growth of real GDP in the United States has fluctuated around ____ for the last 50 years.
- A3%
- B1%
- C5%
- D-1%
21What are some of the economic effects of a tariff?
- AWealth is redistributed from wealthy nations to poor nations and taxes fall.
- BUnemployment and inflation rates both fall.
- CCapital and labor are used less efficiently.
- DTrade remains the same in the long run and GDP rises in the nation that enacts the tariff.
22If wages are not as flexible as prices, an increase in money growth will lead to
- Aan increase in inflation and a rise in real long-run GDP growth.
- B an increase in inflation but no rise in real short-run GDP growth.
- Can increase in inflation and firms profits.
- Dno change in inflation, but a fall in firms' profits.
23Politicians and especially the general public worry about recessions because of
- Aunemployment
- Binflation
- Cchanges in the Solow Growth rate
- DAll of the above
24What factors triggered the Great Depression?
- Adecreased consumer spending and tight monetary policy
- Bdecreased investment and increased inflation
- Cdecreased employment and increased money supply
- Ddecreased inflation and increased income taxes
Informationen
- Beschreibung
- Econ 101 Quiz am Practice Econ 4, erstellt von mjheg am 06/05/2013.
- Autor
- mjheg
- Sprache
- English
- Aufrufe
- 430
- Schlagwörter
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