Question

1) If the fed was concerned with inflation, it should? a) buy bonds and raise the...

1) If the fed was concerned with inflation, it should?
a) buy bonds and raise the discount rate
b) sell bonds and raise the discount rate
c)sell bonds and lower the discount rate

2) If there are only two countries in the world and one has a trade deficit, the other country must?

a) Also have a trade deficit
b) Have a trade surplus
c) Have trade restrictions in place

3) Goods and Services purchased from foreign sources are known as?

a) Imports
b) Net exports
c) The trade deficit

4) Trade increase total world output because?

a) Specialization results in more effective use of resources
b) specialization cause the production possibilities curve to shift inward
C) It protects domestic producers

5) Fiscal and Monetary policies are used to shift the?

A) Aggregate demand curve
B) aggregate supply curve
C) production possibilities curve

6) To produce a combination of goods and services beyond the current production possibilities curve, an economy must?

A) Raise the price of goods and services so that firms will produce more.
B) find more resources or develop new technology
C) Experience population growth

7) When there is an increase in the reserve requirement

A) There is typically a resulting decrease in the money supply
B) There is also an increase in the money multiplier
C) It generally reflects a desire by monetary authorities to stimulate the economy

8) Discretionary fiscal policy refers to?

A) Monetary policy
B) Automatic changes in taxes and spending because of the business cycle
C) changes in spending and revenue items because of new legislation


Homework Answers

Answer #1

1. b) sell bonds and raise the discount rate
(With inflation, Fed would want to decrease the money supply by decreasing the money supply and raising the discount rate.)

2. b) Have a trade surplus
(If one country have trade deficit meaning its imports exceeds exports then another country's exports must exceed imports. So, it has trade surplus.)

3. a) Imports
(Purchase from foreign sources is known as imports.)

4. a) Specialization results in more effective use of resources
(With trade, each country specialize so world output increases.)

(Note: Post 4 MCQs at a time.)

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Suppose that the Fed makes a $100 billion open-market sale of Treasury bonds, and the...
1. Suppose that the Fed makes a $100 billion open-market sale of Treasury bonds, and the money multiplier is 6. Which of the following impacts are most likely to result? a. The money supply shifts inward, and the equilibrium interest rate rises in the money market. b. The money supply shifts outward, and the equilibrium interest rate falls in the money market. c. Investment declines, causing the aggregate demand curve to shift leftward, reducing equilibrium real GDP and thus slowing...
1. When the inflation rate is 4 percent, the Bank of Canada will A) buy bonds...
1. When the inflation rate is 4 percent, the Bank of Canada will A) buy bonds to lower interest rates and shift the aggregate demand curve rightward. B) sell bonds to raise interest rates and shift the aggregate demand curve leftward. C) do nothing, since an interest rate of 4 percent is desirable. D) sell bonds to lower interest rates and accelerate the economy. E) buy bonds to raise interest rates and slow down the economy. 2. If the annual...
When fighting a inflation, monetary authorities can __________ (raise, lower) the rrr, __________ (raise, lower) the...
When fighting a inflation, monetary authorities can __________ (raise, lower) the rrr, __________ (raise, lower) the discount rate of interest, _________ (buy, sell) bonds, or pay ________ (more, less) interest on excess reserves being held. From Chapter 13, when fighting inflation, Congress can use its fiscal policy tools. They can ___________ (increase, decrease) government spending, or ___________ (hike, cut) taxes. Which policy is (monetary or fiscal) would you advocate using to fight inflation, and why?
1) Open market purchase will result in: increase in bank reserves and a decrease in the...
1) Open market purchase will result in: increase in bank reserves and a decrease in the federal funds rate. increase in bank reserves and an increase in the federal funds rate. decrease in bank reserves and a decrease in the federal funds rate. decrease in bank reserves and an increase in the federal funds rate. 2) An increase in government expenditure would shift the: A) aggregate demand curve rightward. aggregate demand curve leftward. aggregate supply curve rightward. aggregate supply curve...
MACROECONOMICS - Aggregate demand curve--- MULTIPLE CHOICe -- PLEASE EXPLAIN YOUR ANSWER/explain your choice SECTION 1:...
MACROECONOMICS - Aggregate demand curve--- MULTIPLE CHOICe -- PLEASE EXPLAIN YOUR ANSWER/explain your choice SECTION 1: Graphically, what would cause the aggregate demand curve to shift to the right? A) an increase in taxes B)   decrease in government spending on goods and services C) an increase in net tax revenues D) Counter-cyclical fiscal policy and a recessionary gap E) Counter-cyclical fiscal policy and an inflationary gap. ---------------------------------------------------------------------------------- SECTION 2: Which of the following is true regarding the aggregate demand curve?...
1- To fight inflation, the Fed should Select one: a. buy securities, which would decrease interest...
1- To fight inflation, the Fed should Select one: a. buy securities, which would decrease interest rates, increase aggregate demand, and therefore decrease the price level. b. buy securities, which would increase interest rates, decrease aggregate demand, and therefore decrease the price level. c. sell securities, which would decrease interest rates, increase aggregate demand, and therefore decrease the price level. d. sell securities, which would increase interest rates, decrease aggregate demand, and therefore decrease the price level. 2- An argument...
1. A lower inflation rate in Canada relative to other countries causes the Canadian dollar to...
1. A lower inflation rate in Canada relative to other countries causes the Canadian dollar to appreciate because A) Canadian real interest rates fall. B) prices of Canadian resources fall in international markets. C) speculators anticipate depreciation of the Canadian dollar. D) Canadian products and services are relatively cheaper so exports to R.O.W. increase. E) Canadian products and services are relatively cheaper so imports from R.O.W. increase. 2. An inflationary gap results from A) appreciation of the C$ leading to...
4- What is it called when the Fed takes actions that result in an increase in...
4- What is it called when the Fed takes actions that result in an increase in the money supply? A. Contractionary fiscal policy B. Expansionary fiscal policy C. Contractionary monetary policy D. Expansionary monetary policy 5. If the federal government finances a deficit by borrowing, we can expect A. National debt will decrease B. More income taxes will be collected C. Higher interest rates due to the higher demand for loanable funds D. Higher Inflation in the economy E. All...
When inflation begins to climb to unacceptable levels in the economy, the government should:    A....
When inflation begins to climb to unacceptable levels in the economy, the government should:    A. use expansionary fiscal policy to shift aggregate demand to the right.     B. use contractionary fiscal policy to shift aggregate demand to the right.     C. use contractionary fiscal policy to shift aggregate demand to the left.     D. use expansionary fiscal policy to shift aggregate demand to the left.
QUESTION 23 An inflation rate above the target rate will result in: a- a movement down...
QUESTION 23 An inflation rate above the target rate will result in: a- a movement down along the monetary policy reaction curve and a movement down the dynamic aggregate demand curve. b- a movement up along the monetary policy reaction curve and a movement up the dynamic aggregate demand curve. c- a movement up along the monetary policy reaction curve and a rightward shift of the dynamic aggregate demand curve. d- a movement up along the monetary policy reaction curve...