02 Jun Question 1. When the U.S. real interest rate falls
Question
1. When the U.S. real interest rate falls
a. U.S. purchases of foreign assets and foreign purchases of U.S. assets rise
b. U.S. purchases of foreign assets rise and foreign purchases of U.S. assets fall
c. U.S. purchases of foreign assets fall and foreign purchases of U.S. assets rise
d. U.S. purchases of foreign assets and foreign purchases of U.S. assets fall
2. Which of the following are currently provisions of the U.S. tax system and discourage saving?
a. some forms of capital income are taxed twice b. if they are large enough, bequests are taxed
c. both a and b
d. neither a nor b
3. Which of the following are taxed?
a. both corporate profits and dividends paid to stockholders
b. corporate profits but not dividends paid to stockholders
c. dividends paid to stockholders but not corporate profits
d. neither corporate profits nor dividends paid to stock holders
4. Which of the following both reduce net exports?
a. exports rise, imports rise
b. exports rise, imports fall
c. imports rise, exports rise
d. imports rise, exports fall
5. Which of the following explains why production rises in most years?
a. increases in the labor force
b. increases in the capital stock
c. advances in technological knowledge
d. All of the above are correct.
6. You are the CEO of a U.S. firm considering building a factory in Chile. If the dollar appreciates
relative to the Chilean peso, then other things the same
a. it takes fewer dollars to build the factory. By itself building the factory increases U.S. net capital outflow.
b. it takes fewer dollars to build the factory. By itself building the factory decreases U.S. net capital outflow.
c. it takes more dollars to build the factory. By itself building the factory increases U.S. net capital outflow.
d. it takes more dollars to build the factory. By itself building the factory decreases U.S. net capital outflow.
7. Net exports of a country are the value of
a. goods and services imported minus the value of goods and services exported.
b. goods and services exported minus the value of goods and services imported.
c. goods exported minus the value of goods imported.
d. goods imported minus the value of goods exported.
8. One year a country has negative net exports. The next year it still has negative net exports and
imports have risen more than exports.
a. its trade surplus fellb. its trade surplus rose.
c. its trade deficit fell. d. its trade deficit rose
9. Other things the same, a higher real interest rate raises the quantity of
a. domestic investment.
b. net capital outflow.
c. loanable funds demanded. d. loanable funds supplied.
10. Other things the same, an increase in the price level makes the dollars people hold worth
a. more, so they can buy more. b. more, so they can buy less.
c. less, so they can buy more. d. less, so they can buy less.
11. Other things the same, if the dollar depreciates relative to the Japanese yen, then
a. the exchange rate falls. It will cost fewer yen to travel in the U.S.
b. the exchange rate falls. It will cost more yen to travel in the U.S.
c. the exchange rate rises. It will cost fewer yen to travel in the U.S.
d. the exchange rate rises. It will cost more yen to travel in the U.S.
12. Over the past three decades, the United States has
a. generally had, or been very near to a trade balance.
b. had trade deficits in about as many years as it has trade surpluses.
c. persistently had a trade deficit.
d. persistently had a trade surplus.
13. Phillips found a
a. positive relation between unemployment and inflation in the United Kingdom.
b. positive relation between unemployment and inflation in the United States.
c. negative relation between unemployment and inflation in the United States.
d. negative relation between unemployment and inflation in the United Kingdom.
14. Purchasing-power parity describes the forces that determine
a. prices in the short run.
b. prices in the long run.
c. exchange rates in the short run.
d. exchange rates in the long run.
15. Recessions in China and India would cause
a. the U.S. price level and real GDP to rise.
b. the U.S. price level and real GDP to fall.
c. the U.S. price level to rise and real GDP to fall. d. the U.S. price level to fall and real GDP rise
16. Stimulus spending in 2009 was used for
a. building roads and bridges.
b. providing aid to local and state governments.
c. making payments to the unemployed.
d. All of the above are correct.
17. Suppose that businesses and consumers become much more optimistic about the future of the
economy. To stabilize output, the Federal Reserve could
a. buy bonds to raise interest rates.
b. buy bonds to lower interest rates.
c. sell bonds to raise interest rates.
d. sell bonds to lower interest rates.
18. The Employment Act of 1946
a. implies that the government should avoid being a cause of economic fluctuations.
b. implies that the government should respond to changes in the private economy to stabilize aggregate
demand.
c. reflected the ideas promoted in Keynes’s influential book, The General Theory of Employment, Interest,
and Money.
d. All of the above are correct
19. The Federal Open Market Committee
a. operates with almost complete discretion over monetary policy.
b. is required to increase the money supply by a given growth rate each year.
c. is required to keep the interest rate within a range set by Congress.
d. is required by its charter to change the money supply using a complex formula that concerns the tradeoff
between inflation and unemployment.
20. The Federal Reserve will tend to tighten monetary policy when
a. interest rates are rising too rapidly.
b. it thinks the unemployment rate is too high.
c. the growth rate of real GDP is quite sluggish.
d. it thinks inflation is too high today, or will become too high in the future.
21. The interest-rate effect
a. depends on the idea that increases in interest rates decrease the quantity of goods and services
demanded.
b. depends on the idea that increases in interest rates decrease the quantity of goods and services
supplied.
c. is responsible for the downward slope of the money-demand curve.
d. is the least important reason, in the case of the United States, for the downward slope of the aggregatedemand curve.
22. The investment component of GDP measures spending on
a. financial assets such as stocks and bonds. During recessions it declines by a relatively large amount.
b. residential construction, business equipment, business structures, and changes in inventory. During
recessions it declines by a relatively large amount.
c. financial assets such as stocks and bonds. During recessions it declines by a relatively small amount.
d. residential construction, business equipment, business structures, and changes in inventory. During
recessions it declines by a relatively large amount.
23.
The misery index is calculated as the
a. inflation rate plus the unemployment rate.
b. unemployment rate minus the inflation rate.
c. actual inflation rate minus the expected inflation rate.
d. natural unemployment rate times the inflation rate
24. The wealth effect stems from the idea that a higher price level
a. increases the real value of households’ money holdings.
b. decreases the real value of households’ money holdings.
c. increases the real value of the domestic currency in foreign-exchange markets.
d. decreases the real value of the domestic currency in foreign-exchange markets.
25. When Congress reduces spending in order to balance the government’s budget, it needs to
consider
a. both the short-run effects on aggregate demand and aggregate supply, and the long-run effects on saving
and growth.
b. only the short-run effects on aggregate demand and aggregate supply.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.