[{"id":214859,"question":"Monetarists believe that a reduction in _____ can be achieved by reducing.","choices":[{"text":"Unemployment, prices","value":"A"},{"text":"Inflation, wages","value":"B"},{"text":"Unemployment, wages","value":"C"},{"text":"Inflation, the quantity of nominal money","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214858,"question":"The quantity theory of money says that changes in ______ lead to equivalent changes in ______ but have no effect on.","choices":[{"text":"Prices, wages, output and employment.","value":"A"},{"text":"Output, prices, employment","value":"B"},{"text":"Nominal money, the price level output and employment.","value":"C"},{"text":"Nominal money output prices","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214857,"question":"In the event of an increase in the international price of oil that encouraged the central bank to accept lower real interest rates, inflation would most likely.","choices":[{"text":"Fall","value":"A"},{"text":"Increases","value":"B"},{"text":"Remain the same","value":"C"},{"text":"Fluctuate","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214856,"question":"Expansionary fiscal policy in the classical model will cause aggregate demand to ______ potential output.","choices":[{"text":"Exceed","value":"A"},{"text":"Fall below","value":"B"},{"text":"Fluclaute around","value":"C"},{"text":"Remain equal to.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214855,"question":"The Keynesian model is a good guide to ______ behavior and the classical model describes behavior in.","choices":[{"text":"<sup>Long run, short run</sup>","value":"A"},{"text":"Flexible, imperfect markets","value":"B"},{"text":"<div>Short term , long run</div>","value":"C"},{"text":"Ong run, imperfect market.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214854,"question":"At the intersection of AD and AS equilibrium is achieved in.","choices":[{"text":"The goods market","value":"A"},{"text":"The money market","value":"B"},{"text":"The labour market","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214853,"question":"The equilibrium inflation rate is determine by the intersection of __________ and ___","choices":[{"text":"demand, supply","value":"A"},{"text":"IS , LM","value":"B"},{"text":"AD, AS","value":"C"},{"text":"Labour demand, labour supply","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214852,"question":"In the classical model, potential output can not be increased by","choices":[{"text":"Monetary growth","value":"A"},{"text":"Better technology","value":"B"},{"text":"More capital","value":"C"},{"text":"higher labour supply","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214851,"question":"If a person thinks they are better off after a 10% wage increase, and all prices have risen 10%, then they are experiencing.","choices":[{"text":"Inflation","value":"A"},{"text":"A supply shocks","value":"B"},{"text":"Crowding out","value":"C"},{"text":"Inflation illusion","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214850,"question":"The AD schedule indicates that______ inflation is associated with______ output.","choices":[{"text":"higher , lower","value":"A"},{"text":"Higher , higher","value":"B"},{"text":"Lower , lower","value":"C"},{"text":"zero ,zero","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214849,"question":"All of the following are type of monetary policy except","choices":[{"text":"A nominal money stock target","value":"A"},{"text":"A balances budget","value":"B"},{"text":"An inflation target","value":"C"},{"text":"The pursuit of a target real interest rate","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214848,"question":"A fall in investment demand can result from","choices":[{"text":"Higher interest rates","value":"A"},{"text":"Lower expected future profits","value":"B"},{"text":"More expensive capital goods","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214847,"question":"A reduction in interest rates, causes an increases in the monetary base that result in an_____ in the availability of consumer credit and a _ in the cost of consumer credit.","choices":[{"text":"Reduction, increases","value":"A"},{"text":"reduction,reduction","value":"B"},{"text":"increase, reduction","value":"C"},{"text":"increases, increases","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214846,"question":"One of the transmission mechanism of monetary policy is through consumer house hold wealth.___________ and consumption.","choices":[{"text":"rise, increases, increases","value":"A"},{"text":"rise, falls, increases","value":"B"},{"text":"rise, increases, falls","value":"C"},{"text":"rise, falls, falls","value":"D"},{"value":"E"}],"correctAnswer":4},{"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}]