[{"id":214845,"question":"If the central bank buys financial securities in the open market to increase the monetary base, this is an example of.","choices":[{"text":"Lender of last resort","value":"A"},{"text":"Financial intermediation","value":"B"},{"text":"Open market operations","value":"C"},{"text":"Financial regulation.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214844,"question":"M4 is a _________ measures of money and includes deposits at both _____________ and","choices":[{"text":"Narrow, banks, building societies","value":"A"},{"text":"<i>Wide, banks, insurance companies</i>","value":"B"},{"text":"narrow, banks, insurance companies","value":"C"},{"text":"Wide, banks, building societies.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214843,"question":"When real income increases, other things equal we fan expect the demand for real money holdings to.","choices":[{"text":"Fall","value":"A"},{"text":"Not change","value":"B"},{"text":"Increase","value":"C"},{"text":"Decrease","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214842,"question":"If I keep some money available in case I see a bargain this is an example of.","choices":[{"text":"Asset demand for money","value":"A"},{"text":"Transactions demand for money","value":"B"},{"text":"Token demand for money","value":"C"},{"text":"Precautionary demand for money","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214841,"question":"If banks and the private sector decide to hold less cash the money multiplier will be.","choices":[{"text":"Unchanged","value":"A"},{"text":"Larger","value":"B"},{"text":"Smaller","value":"C"},{"text":"unstable","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214840,"question":"Bank create money by","choices":[{"text":"Printing it","value":"A"},{"text":"Issuing debit cards","value":"B"},{"text":"Accepting chequeens","value":"C"},{"text":"Lending out part of their deposits","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214839,"question":"The primary function of a bank is to.","choices":[{"text":"Control the money supply","value":"A"},{"text":"Provide notes and coins for trade","value":"B"},{"text":"Make a profit","value":"C"},{"text":"Provide a chequeen clearing system.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214838,"question":"Higher export demand _______ output and a higher MPZ______ output..","choices":[{"text":"Reduces, reduces","value":"A"},{"text":"Reduces, increases","value":"B"},{"text":"Increases, reduces","value":"C"},{"text":"increases, increases","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214837,"question":"In an open economy leakages to imports ______ the value of the multiplier.","choices":[{"text":"Reduce","value":"A"},{"text":"Increase","value":"B"},{"text":"do not change","value":"C"},{"text":"None of these","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214836,"question":"When the level of income _______ there will be atendency for the trade balance to improve as imports.","choices":[{"text":"Increases, increase","value":"A"},{"text":"falls, fall","value":"B"},{"text":"Increase, fall","value":"C"},{"text":"fall , increase","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214835,"question":"The total multiplier for the economy will reflect.","choices":[{"text":"MPC and MPT","value":"A"},{"text":"MPT and MPZ","value":"B"},{"text":"MPC and MPZ","value":"C"},{"text":"MPC, MPT and MPZ","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214834,"question":"Aggregate demand in an economy trading internationally with a government sector can be written s.","choices":[{"text":"AD = C+1","value":"A"},{"text":"AD = C + 1+ G","value":"B"},{"text":"AD = C +1+G+X+Z","value":"C"},{"text":"AD+C+1+G+X-Z","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214833,"question":"For given government spending and taxation the government budget deficit will grow in __________ and decline in _________","choices":[{"text":"booms, booms","value":"A"},{"text":"recession, recession","value":"B"},{"text":"booms, recessions","value":"C"},{"text":"recessions, booms","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214832,"question":"Starting from a balanced budget, for a given tax rate an increase in income will cause the government budget to.","choices":[{"text":"Move into surplus","value":"A"},{"text":"Move into deficit","value":"B"},{"text":"Remain unchanged","value":"C"},{"text":"None of these","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214831,"question":"If the government increase spending and raises taxes by just enough to finance the increase it will.","choices":[{"text":"Leave output unchagned","value":"A"},{"text":"Increase output","value":"B"},{"text":"Reduce output","value":"C"},{"text":"Increase the MPC","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214830,"question":"Aggregate demand without a foreign sector is the sum of.","choices":[{"text":"c+1","value":"A"},{"text":"C+G","value":"B"},{"text":"1+G","value":"C"},{"text":"C+!+G","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214829,"question":"If as result of householder wish to save more there is a change in equilibrium income and no change in equilibrium saving this as an example of.","choices":[{"text":"Market imperfection","value":"A"},{"text":"The law of diminishing returns","value":"B"},{"text":"The paradox of thriff","value":"C"},{"text":"Market failure","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214828,"question":"If the MPC is 0.5 the multiplier is","choices":[{"text":"2","value":"A"},{"text":"1/2","value":"B"},{"text":"0.2","value":"C"},{"text":"20","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214827,"question":"The multiplier is calculated as.","choices":[{"text":"1(1-MPC)","value":"A"},{"text":"1/MPS","value":"B"},{"text":"1/MPC","value":"C"},{"text":"a or b","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214826,"question":"The multiplier tells us how much __________ chagnes after a shift in.","choices":[{"text":"Consumption, income","value":"A"},{"text":"Investment , output","value":"B"},{"text":"Savings, investment","value":"C"},{"text":"output, aggregate demand","value":"D"},{"value":"E"}],"correctAnswer":4}]