Question

1.When a new loan is made

	A.	All of the answers are correct.
	B.	Money supply will not change.
	C.	Money supply increases.
	D.	Money supply decreases.

2.Which of the following is a goal of monetary policy?

	A.	All of the choices are correct.
	B.	Promote faster long-term economic growth.
	C.	Keep inflation in check.
	D.	Maintain full employment.

The People's Bank of China is China's central bank. As a part of its duties, the People's Bank of China would

	A.	Provide banking services to foreigners.
	B.	Change tax rates.
	C.	Control the quantity of money in circulation in China.
	D.	Provide banking services to China's citizens and firms.

4.

Automatic stabilizers

	A.	Are not a form of fiscal policy because it is not explicitly mentioned in the U.S. Constitution.
	B.	Are not a form of fiscal policy because there is no act of Congress or the President involved.
	C.	Are a form of fiscal policy because Congress has declared it to be so.
	D.	Are a form of fiscal policy because they involve government spending and taxes to fight the business cycle.

5.

An underperforming economy is one where

	A.	Actual real GDP is below the full employment level of GDP.
	B.	Workers' job performance lags due to slow changes in technology.
	C.	Actual real GDP is higher than the full employment level of GDP.
	D.	The full employment level of GDP is almost equal to actual real GDP.

Answer 1