28 Jul QUESTION 1 THE GOVERNMENT, DURING PERIODS OF ECONOMIC
question
1
The government,
during periods of economic recession, usually:
Leave the same expenses.
Increase revenue.
Increase spending.
Reduce expenditures.
question
2
Fiscal policy
aimed at reducing economic activity to counter inflation is known as a policy:
non-discretionary
contraction
expansionist
stagnation
question
3
Food stamps represent a transfer of
government:
true
false
question 4
An increase in
government spending as a measure of fiscal policy will shift the curve to the
________ __________ added.
offer, left
Demand Left
demand, right
offer, right
question
5
Fixed a
reduction of $ 1,000,000 in income tax increase disposable income in exactly
1,000,000.
true
false
question
6
Which of the
following policies will reduce the government deficit?
Tax increases and a decrease in
government spending.
Decreased taxes and increased
government spending.
An increase in food stamp payments.
Increased investment in
infrastructure and decrease in corporate taxes.
question
7
The imposition of taxes and use government
spending to achieve economic targets known as:
fiscal policy
monetary politics
pricing policy
economic policy
question
8
Which of the
following results can be attributed to a sound fiscal policy?
higher unemployment
larger deficit budgetary
More jobs
Levels higher prices
question
9
Which of the
following statements will stimulate economic activity?
Increases in transfer payments
Reductions in tax rates
Increases in government spending on
goods and services
Higher interest rate
question
10
A deficit can be
financed by:
The sale of government assets
The issuance of government bonds
All alternatives mentioned
Bank loans in the private sector
question
11
Automatic
stabilizers leveled economic activity because:
The government can change at will.
The expenditure multiplier is
doubled.
They have control over inflation
Increase government spending during
a recession and government spending are reduced during inflation.
question
12
The discount
rate and reserve requirements are part of fiscal policy.
true
false
question
13
The Federal
Reserve System is fiscal agent of the Government
true
false
question
14
The economic
downturn is relieved through higher taxes.
true
false
question
15
The money supply
consists of:
Mutual funds plus credit cards
M2 only
M1 and M2
M1 only
question
16
To stimulate the
economy, the Federal Reserve should:
Reducing the discount rate.
Increase government spending.
Increase legal reserves.
Reduce taxes.
question
17
Federal Reserve
It performs all the functions
mentioned here
Determines the money supply
It is the bank of banks
Supervises banks
question
18
The most
important decision-making related to consumer determinant is:
Loyalty
Disposable income
Wealth
Price
question
19
Which of the
following statements will increase the consumption function?
little wealth
Much current indebtedness
Expectations of future shortages of
essential foods.
Deflationary expectations
question
20
The sum of the
marginal propensity to consume and the marginal propensity to save is:
Greater than 1
Equal to 1
Less than 1
Negative
question
21
The market where
sell negotiable certificates known as:
current market
Capital market
Money market
negotiable market
question
22
A decrease in
productivity of production inputs:
It will increase aggregate supply
It will reduce aggregate demand
It will increase aggregate demand
It will reduce aggregate supply
question
23
An increase in
consumer spending:
It will reduce aggregate demand and
decrease the price level
Increase the gross domestic product
and the price level
It will increase aggregate supply
and decrease the price level
It will not change the price level
and the gross domestic product
question
24
Corporations get
short-term funds in the market:
capital
money
goods and services
labor
question
25
Financial
securities underwriting means:
Companies enter the stock before
issuing them.
Companies print their name on the
action.
The corporation is part of the
auction market of financial securities.
The investment bank acquired the
entire issue of bonds or shares.
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