04 Jun 26. In considering the net effect of expansionary fiscal policy on the trade deficit, the 27. If U.S. interest rates fall relative to Japanese interest rates and Japane
Question
ECO/372 Principles of Macroeconomics
1. The market where business sells goods and services to households and the government is called
2. Real gross domestic product is best defined as
3. Underemployment includes
4. .The bureau of economic analysis is responsible for which of the following
5. The Federal Reserve provides which of the following data
6. Consider if the government instituted a 10% income tax surcharge. In terms of the AS/AD model this change should have
7. The largest source of household income is in the U.S. is obtained
8. If the depreciation of a country’s currency increases it aggregate expenditures by 20, the AD curve will
9. Aggregate demand management policies are designed most directly to
10. Suppose that consumer spending is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model?
11. According to Keynes, market economies
12. The laissez-faire policy prescription to eliminate unemployment was to
13. In the AS/AD model, an expansionary monetary policy has the greatest effect on the price level when it
14. The Federal funds rate
15. What tool of monetary policy will the Federal Reserve use to increase the federal funds rate from 1% to 1.25%?
16. If the Federal Reserve increases the required reserves, financial institutions will likely lend out
17. Suppose the money multiplier in the U.S. is 3. Suppose further that if the Federal Reserve changes the discount rate by 1 percentage point, banks change their reserves by 300. To increase the money supply by 2700 the Federal Reserve should
18. If the Federal Reserve reduced its reserve requirement from 6.5 percent to 5 percent. This policy would most likely
19. A country can have a trade deficit as long as it can
20. A weaker dollar
21. In the short run, a trade deficit allows more consumption, but in the long run, a trade deficit is a problem because
22. Considering an economy with a current trade deficit and considering only the direct effect on income, an expansionary monetary policy tends to
23. The balance of trade measures the
24. When a country runs a trade deficit, it does so by:
25. Expansionary fiscal policy tends to
26. In considering the net effect of expansionary fiscal policy on the trade deficit, the
27. If U.S. interest rates fall relative to Japanese interest rates and Japanese inflation falls relative to U.S. inflation, then the
28. Expansionary monetary policy tends to
29. The U.S. has limits on Chinese textile imports. Such limits are an example of
30. Duties imposed by the U.S. government on imported Chinese frozen and canned shrimp are an example of
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