[{"id":213929,"question":"The market price of bonds can fluctuate depending on","choices":[{"text":"How many bonds were sold","value":"A"},{"text":"Who bought the bonds","value":"B"},{"text":"The amount of the coupon","value":"C"},{"text":"The interest rate","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213928,"question":"During periods of negative demand shocks deficit target reductions such as those mandated in the Gramm Rudman Hollings Act would tend to.","choices":[{"text":"Stimulate the economy and increase empolyment.","value":"A"},{"text":"Result in additional recessionary declines in employment and income","value":"B"},{"text":"Stimulator defiance spending","value":"C"},{"text":"Have an automatic stabilizing impact upon the economy","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213927,"question":"The ____ lag for fiscal policy is generally _____ than it is for monetary policy.","choices":[{"text":"Recognition ; shorter","value":"A"},{"text":"Recognition ; longer","value":"B"},{"text":"Implementation ; shorter","value":"C"},{"text":"Implementation ; longer","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213926,"question":"Employment tends to _______ whwn aggregate output.","choices":[{"text":"rise, falls","value":"A"},{"text":"rise ; rises","value":"B"},{"text":"falls; rises","value":"C"},{"text":"Not change ; falls","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213925,"question":"In the 1930s, when Keynes was alive a expansionary fiscal policy taking everything else constant would have led to.","choices":[{"text":"A relative large increase in Y, a smaller increate n P","value":"A"},{"text":"A relative large increase in P, a smaller increase in Y","value":"B"},{"text":"Both Y and P increasing with an percentage","value":"C"},{"text":"Only Y increase","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213924,"question":"An increase in oil prices, such as the oil shocks in the 70 s, lead to _______ there by causing _____","choices":[{"text":"A movement along the AS curve cost push inflation","value":"A"},{"text":"A leftward shift int he AS curve demand pull inflation.","value":"B"},{"text":"A right ward shift in the AS Curve cost push inflation","value":"C"},{"text":"a left ward shift in the AS curve cost push inflation","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213923,"question":"Under a fixed exchange rate system an expansionary fiscal policy leads to a","choices":[{"text":"Trade account deficit and a capital account surplus.","value":"A"},{"text":"Trade account deficit and a capital account deficit","value":"B"},{"text":"Trade account surplus and a capital account surplus","value":"C"},{"text":"Trade account surplus and a capital accoundt deficit","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213922,"question":"Under system fixed exchange rates which of the following policies promotes internal balance for a nation.","choices":[{"text":"Fiscal policy","value":"A"},{"text":"Monetary policy","value":"B"},{"text":"Both fiscal policy and monetary policy","value":"C"},{"text":"Neither fiscal policy nor monetary policy","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213921,"question":"Given fixed exchange rates assume Pakistan initiates contractionary monetary ad fiscal policies to combat inflation. these policies will also.","choices":[{"text":"Reduce a balance of payments surplus","value":"A"},{"text":"Reduce a balance of payments deficit","value":"B"},{"text":"Increases both imports and exports","value":"C"},{"text":"Decrease both imports and exports","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213920,"question":"Which policies are expenditure changing policies.","choices":[{"text":"Currency devaluation and revaluation","value":"A"},{"text":"Import quotas and tariffs","value":"B"},{"text":"Monetary and fiscal policy","value":"C"},{"text":"Wage and price controls","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213919,"question":"When a government prints money to finance its expenditures it is likely to cause","choices":[{"text":"Unemployment","value":"A"},{"text":"Inflation","value":"B"},{"text":"Deflation","value":"C"},{"text":"Reductions in the use of barter","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213918,"question":"Large difference is inflation rates among countries are almost always the result of large difference in.","choices":[{"text":"Productivity","value":"A"},{"text":"Real income growth","value":"B"},{"text":"The growth rates of real money demand","value":"C"},{"text":"The growth rates of nominal money supplies","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213917,"question":"The real money demand doubles while the nominal money supply is unchanged what happens to the price level.","choices":[{"text":"The price level increase by a factor of four","value":"A"},{"text":"The price level doubles","value":"B"},{"text":"The price level is unchanged","value":"C"},{"text":"The price level falls by one half.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213916,"question":"If the nominal money supply doubles while real money demand is unchanged what happens to the price level.","choices":[{"text":"The price level increases by a factor of four","value":"A"},{"text":"The price level doubles","value":"B"},{"text":"The price level is unchanged","value":"C"},{"text":"The price level falls by one half.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213915,"question":"Suppose a new law imposes a tax on all trades of bonds and stock What is the likely effect on money demand.","choices":[{"text":"Money demand declines first then rises when inflation increases","value":"A"},{"text":"Money demand rises","value":"B"},{"text":"The overall effect is ambiguous","value":"C"},{"text":"Money demand declines","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213914,"question":"If there is a financial panic and increased uncertainty about the return in the stock market and bond market what is the likely effect on money demand.","choices":[{"text":"Money demand declines first then rises when inflation increases","value":"A"},{"text":"Money demand rises","value":"B"},{"text":"The overall effect its ambiguous","value":"C"},{"text":"Money demand declines","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213913,"question":"Over time the wealth of society increases and payments technologies get more efficient What is the effect on money demand of these two changes.","choices":[{"text":"Money demand rises proportionately to the rise in wealth.","value":"A"},{"text":"Money demand rises, but less than proportionately to the rise in wealth.","value":"B"},{"text":"The overall effect in ambiguous","value":"C"},{"text":"Money demand declines","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213912,"question":"An increase in expected inflation is likely ot cause.","choices":[{"text":"A decline in the demand for real balances","value":"A"},{"text":"an increase in the demand for real balances.","value":"B"},{"text":"No change i the demand for real balances","value":"C"},{"text":"No change in the demand for real balances only of the income elasticity of real money demand is zero.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213911,"question":"The opportunity cost of holding currency decrease when","choices":[{"text":"Income decreases","value":"A"},{"text":"The interest rate on bonds decreases","value":"B"},{"text":"The interest rate on money decrease wealth decrease","value":"C"},{"text":"Wealth decreases","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213910,"question":"The opportunity cost of holding currency decreases when.","choices":[{"text":"Income decreases","value":"A"},{"text":"The interest rate on bonds decrease","value":"B"},{"text":"Buying newly issued government bonds directly from the central bank","value":"C"},{"text":"Buying newly issued government bonds directly to the central bank.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213909,"question":"What's the most common way for a central bank to reduce the money supply.","choices":[{"text":"Collect higher taxes","value":"A"},{"text":"Sell bonds to the public","value":"B"},{"text":"Buy bounds from the government","value":"C"},{"text":"Buy bonds from the public","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213908,"question":"Weighted monetary aggregates","choices":[{"text":"Ignore the fact that some assets are more money like than others.","value":"A"},{"text":"Are constructed by simply adding up the outstanding amounts of various types of asssets","value":"B"},{"text":"Give greater weight to currency than to savings deposits","value":"C"},{"text":"Value coins more than currency.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213907,"question":"Which of the following measures is the best measure of money as a medium of exchange.","choices":[{"text":"M1","value":"A"},{"text":"M2","value":"B"},{"text":"M3","value":"C"},{"text":"None of the above","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213906,"question":"One of money's primary roles in the economy comes from the use of money to transfer purchasing power to the future This role of money is called.","choices":[{"text":"store of value","value":"A"},{"text":"Unit of account","value":"B"},{"text":"Medium of exchange","value":"C"},{"text":"Standard of deferred payment","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213905,"question":"Why do people keep currency in their pockets when bank deposits pay interest.","choices":[{"text":"Because banks might steal your money","value":"A"},{"text":"Because currency is more liquid","value":"B"},{"text":"Because bank deposits lose value due to inflation","value":"C"},{"text":"Because bank deposits lose value due to exchange in interest rates.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213904,"question":"A good that is used as a medium of exchange as well as being a consumption good is called.","choices":[{"text":"A barter money","value":"A"},{"text":"A commodity money","value":"B"},{"text":"A legal tender","value":"C"},{"text":"A debased money","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213903,"question":"Money's primary role in the economy comes from the benefits of lowering transactions costs and allowing specialization This function of money is called.","choices":[{"text":"Store of value","value":"A"},{"text":"Medium of exchange","value":"B"},{"text":"Standard of deferred payment","value":"C"},{"text":"Unit of account","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213902,"question":"In economics money refers to","choices":[{"text":"Income","value":"A"},{"text":"Wealth","value":"B"},{"text":"Assets use and accepted an payment","value":"C"},{"text":"Currency","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213901,"question":"The use of money is more efficient than barter because the introduction of money","choices":[{"text":"Reduces the need for economic specialization","value":"A"},{"text":"Reduces the need to exchange goods","value":"B"},{"text":"Reduce the need for other stores of value","value":"C"},{"text":"Reduces transaction costs","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213900,"question":"A major advantage of monetary over fiscal policy is that monetary policy","choices":[{"text":"Can be put into effect more quickly","value":"A"},{"text":"Affects all sectors of the economy equally","value":"B"},{"text":"Authorities are quicker to see the need for policy","value":"C"},{"text":"Has a more direct and predictable impact on spending.","value":"D"},{"value":"E"}],"correctAnswer":1}]