ECN 211 Final Test Exam Questions & Revised Correct Answers With Explanation Latest Update | Already Passed!!

ECN 211 Final Test Exam Questions & Revised Correct Answers With Explanation Latest Update | Already Passed!! 1. When economic growth ___, fiscal policy should be ____. a. slows; contractionary b. accelerates; accelerated c. slows; expansionary d. accelerates; expansionary - ANSWER : slows, expansionary 1. Expansionary monetary policy aids the economy by a. encouraging imports through a lower exchange rate. b. encouraging exports through a higher exchange rate. c. encouraging imports through a higher exchange rate. d. encouraging exports through a lower exchange rate. - ANSWER : encouraging exports through a lower exchange rate 1. A recession is technically defined by the change in the unemployment rate. a. True b. False - ANSWER : False 1. What does it mean for the government to be the "spender of last resort?" a. When no economic actor is spending, government can keep income from falling. b. Governments will always run budget deficits. c. It's the government's responsibility to prevent bank runs. d. The Federal Reserve can always print money. - ANSWER : when no economic actor is spending, government can keep income from falling 1. What typically happens to the unemployment rate in a recession? a. It starts increasing as soon as trouble appears. b. It falls throughout a recession. c. It rises after the recession has started and can continue being high once the recession is technically over. d. It will fall until the recession is over. At that point, it will begin rising rapidly and then start falling. - ANSWER : it rises after the recession has started and can continue being high once the recession is technically over