| 1 |
An item designed as money that is intrinsically worthless could the.
|
A. A currency note
B. A silver coin
C. A barter item
D. Any tradeable commodity
|
| 2 |
An increase in the money supply other thighs equal shifts the ______ curve to the
|
A. IS ; right
B. Is ; left
C. LM ; Left
D. LM ; right
|
| 3 |
Fiscal policy refers to the manipulation of government income and expenditure to.
|
A. control the volume and price of money
B. Limit the rate of increaes in incomes
C. Effect the value of the dollar on world financial market.
D. Affect the level of total expenditure output and employment
|
| 4 |
In the Keynesian cross diagram, an expenditure causes the aggregate demand function to shift _________ and the equilibrium level of aggregate output to.
|
A. up ; rise
B. up ; fall
C. down ; rise
D. down ; fall
|
| 5 |
According to the Laffer curve as tax rates increase tax revenues.
|
A. Decrease continuously.
B. Initially decrease and then increase
C. Rise continuously
D. Initially increase and then decrease
|
| 6 |
An example of nondiscretionary fiscal policy would be.
|
A. The operation of the welfare state
B. A Federal jobs program adopted to stimulate consumption
C. A tax cut adopted to stimulate consumption
D. An interest rate cut implemented to stimulate consumption
|
| 7 |
Which of the followig does not shift the IS curve .
|
A. An increases in autonomous consumption
B. An increase in government spending.
C. A decline in government spending
D. A fall in theinterest rate
|
| 8 |
The main source of interest profits for banks is.
|
A. Checking account fees
B. Loans
C. Government securities
D. Savigng accounts
|
| 9 |
In the ISLM framework an expansionary monetary policy causes aggregate output to _____________ and the interest rate to
|
A. increase ; increase
B. Increase ; decrease
C. decrease ; decrease
D. decrease ; increase
|
| 10 |
A good that is used as a medium of exchange as well as being a consumption good is called.
|
A. A barter money
B. A commodity money
C. A legal tender
D. A debased money
|
| 11 |
an asset that can easily be exchanged for goods and services is called a.
|
A. Financial asset
B. Barter like asset
C. Illegitimate asset
D. Liquid asset
|
| 12 |
How much of the Rs.5 billion dollar increase in government expenditures will be recouped in taxes.
|
A. Rs.1 billion
B. Rs.2 billion
C. Rs.0.9 billion
D. Rs.0.5 billion
|
| 13 |
The function of money do not include.
|
A. an exchange of purchasing power
B. A unit of account
C. A medium of exchange
D. A store of value
|
| 14 |
You move some of your savings account balance into your checking account.
|
A. M2 falls and M1 rises
B. M1 falls and M2 rises
C. M1 and M2 are unchanged
D. M1 rises and M2 remains unchanged
|
| 15 |
Which of the following events will lead to a decrease in the demand for money.
|
A. An increase in the level of aggregate output.
B. A decrease in the supply of money
C. A decrease in the interest rate
D. a decrease in the price level
|
| 16 |
A decrease iin money demand other thing equal shifts the _____ curve to the
|
A. IS ; right
B. Is ; Left
C. LM ; Left
D. LM ; Rfight
|
| 17 |
Factor that cause the IS curve to shift include.
|
A. Change in autocoups consumer spending
B. Change in taxes
C. Change in government spending
D. All of the above
|
| 18 |
If the central bank prints more 10 billion and spends them then as a direct result of this action.
|
A. M1 and M2 both increases
B. Neighed M1 nor M2 increase
C. M1 increase but M2 does not
D. M2 increased but M1 does not.
|
| 19 |
"The earlier predictions underestimated currency in circulation and treasury balances at the Fed, both of which drained reserves from the banking system" Lower reserves means.
|
A. Lower interest rates
B. Lower money supply
C. Lower unemployment
D. Higher inflation
|
| 20 |
Money's primary role in the economy comes from the benefits of lowering transactions costs and allowing specialization This function of money is called.
|
A. Store of value
B. Medium of exchange
C. Standard of deferred payment
D. Unit of account
|