SOC 101 1001 Macroeconomics Unit 3

Macroeconomics Milestone 3 1. Which of the choices below is NOT true about expansionary fiscal policy? A: It will result in an increase in the unemployment rate. 2. Which statement below corresponds to the term "central bank?" A: They have a variety of tools that can be used to control the money supply. 3. Which of the following is an example of contractionary monetary policy? A: Open market sale of treasury securities 4. If we look only at the domestic market, GDP is calculated using which equation below? A: Y = C + I + G 5. Money market mutual funds are an example of which of the following types of money? A: M2 6. Which statement below corresponds to the term "Federal Reserve?" A: This is independent from the U.S. government. 7. Which of the following are NOT ways that budget deficits can have a negative effect on future economic growth? A: When the debt is held domestically. 8. Which of the following is true about a fractional reserve banking system? A: It allows banks to loan out a portion of deposits and therefore create money. 9. Which