ECN Final Exam with 100% correct
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When our interest rates are higher in country A than those in other countries, we
expect that - correct answer ✔✔Capital will flow into country A
The national debt_________ in years in which the federal government incurs a
_______ - correct answer ✔✔rises; deficit
Suppose the reserve ratio is 20%. If Holly deposits $1,000 of cash into her
checking account and her bank lends $600 to Freda, the money supply: - correct
answer ✔✔increases by $600.
Expansionary monetary policy in the United States causes U.S. interest rates to fall
and the dollar to depreciate - correct answer ✔✔fall; depreciate
Which one of the following is NOT included in MI - correct answer ✔✔savings
deposits
Suppose the government increases taxes by more than is necessary to close to
inflationary gap. Which of the following would most likely result - correct answer
✔✔The economy could move into a recession
If the country has a current account deficit it must have a - correct answer
✔✔Financial account surplus
, (Scenario: Monetary Base and Money Supply) How much is MI - correct answer
✔✔$330
In 2011, consumption spending is $7,000, government purchasing is $2,000, and
investment spending is $1,500. If GDP for 2011 is $10,300, then - correct answer
✔✔Exports are $600 and imports are $800
Aggregate demand will increase in all of the following cases except if - correct
answer ✔✔Interest rates increase
Suppose that the stock market crashes. Which of the following is most likely to
occur - correct answer ✔✔the aggregate demand curve shifts to the left
Which of the following would an economic policy maker rank as the least
preferred type of shock? - correct answer ✔✔Negative supply shock
Suppose the economy is in a short-run equilibrium where the actual output is
greater than potential output. The economy is - correct answer ✔✔An inflationary
gap, nominal wages will increase and SRAS will shift to the left until the actual
GDP is equal to the potential GDP in the Kong run
A reduction in government transfers ________, therefore shifting the aggregate
demand curve to the ________. - correct answer ✔✔decreases disposable
income and consumption; left
already passed
When our interest rates are higher in country A than those in other countries, we
expect that - correct answer ✔✔Capital will flow into country A
The national debt_________ in years in which the federal government incurs a
_______ - correct answer ✔✔rises; deficit
Suppose the reserve ratio is 20%. If Holly deposits $1,000 of cash into her
checking account and her bank lends $600 to Freda, the money supply: - correct
answer ✔✔increases by $600.
Expansionary monetary policy in the United States causes U.S. interest rates to fall
and the dollar to depreciate - correct answer ✔✔fall; depreciate
Which one of the following is NOT included in MI - correct answer ✔✔savings
deposits
Suppose the government increases taxes by more than is necessary to close to
inflationary gap. Which of the following would most likely result - correct answer
✔✔The economy could move into a recession
If the country has a current account deficit it must have a - correct answer
✔✔Financial account surplus
, (Scenario: Monetary Base and Money Supply) How much is MI - correct answer
✔✔$330
In 2011, consumption spending is $7,000, government purchasing is $2,000, and
investment spending is $1,500. If GDP for 2011 is $10,300, then - correct answer
✔✔Exports are $600 and imports are $800
Aggregate demand will increase in all of the following cases except if - correct
answer ✔✔Interest rates increase
Suppose that the stock market crashes. Which of the following is most likely to
occur - correct answer ✔✔the aggregate demand curve shifts to the left
Which of the following would an economic policy maker rank as the least
preferred type of shock? - correct answer ✔✔Negative supply shock
Suppose the economy is in a short-run equilibrium where the actual output is
greater than potential output. The economy is - correct answer ✔✔An inflationary
gap, nominal wages will increase and SRAS will shift to the left until the actual
GDP is equal to the potential GDP in the Kong run
A reduction in government transfers ________, therefore shifting the aggregate
demand curve to the ________. - correct answer ✔✔decreases disposable
income and consumption; left
