ECO 201 Principles of Microeconomics Chapter 16 Quiz Answers
BUY HERE⬊
Saint Leo ECO 201 Chapter 16 Quiz Answers
1. Which of the following is not a reason people choose to hold money balances?
2. The demand for money
3. Suppose you go shopping for a gift for a friend and also find a sweater that you want for yourself. You pay cash for the gift and write a check for the sweater. Your purchases are made with money holdings represented by
4. If the Fed increases the discount rate, relative to the federal funds rate, then this
5. If the Fed decreases the discount rate, relative to the federal funds rate, then this
6. If there is an inflationary gap in the short run, the Federal Reserve can eliminate the gap in the short run by undertaking a policy action that reduces aggregate demand. But, if Federal Reserve chooses not to close the gap in the short run, the economy will eventually get back to full employment in the long run. Because when there is an inflationary gap in the short run, then in the long run a new equilibrium will arise as input prices and expectations adjust upward, causing the aggregate supply to shift upward and to the left and pushing equilibrium real GDP back to its long-run potential value.
7. If there is a recessionary gap in the short run, the Federal Reserve can eliminate the gap in the short run by undertaking a policy action that raises aggregate demand. But, if Federal Reserve chooses not to close the gap in the short run, the economy will eventually get back to full employment in the long run. Because when there is a recessionary gap in the short run, then in the long run a new equilibrium will arise as input prices and expectations adjust downward, causing the aggregate supply to shift downward and to the right and pushing equilibrium real GDP back to its long-run potential value.
8. Suppose that the economy currently is in long-run equilibrium. Explain the short- and long-run adjustments that will take place in an aggregate demand-aggregate supply diagram if the Fed expands the quantity of money in circulation.
9. An increase in the money supply will
10. An increase in the money supply will
11. Suppose that the economy is depicted as shown to the right.
12. Suppose that the economy is depicted at the right.
13. Which of the following is a true statement?
14. The indirect effect of an increase in the money supply works through
15. Suppose that, initially, the U.S. economy was in an aggregate demand-aggregate supply equilibrium at point A along the aggregate demand curve ADin the diagram. Now, however, the value of the U.S. dollar has suddenly appreciated relative to foreign currencies. This appreciation happens to have no measurable effects on either the short-run or the long-run aggregate supply curve in the United States. It does, however, influence U.S. aggregate demand.
16. Assuming that the Fed judges inflation to be the most significant problem in the economy and that it wishes to employ all three of its policy instruments. It sells bonds in the open market, increases the discount rate, and increases the reserve ratio. The net export effect resulting from these monetary policy actions will
17. In an open economy, the net export effect
18. Contractionary monetary policy causes the
19. The net export effect of contractionary monetary policy predicts that a country's
20. Contractionary monetary policy by the Fed can be hampered by
21. As a result of monetary policy of the Fed, the dollar appreciated and the amount of exports decreased. Which of the following Fed policies could have caused this outcome?
22. In an open economy, the net export effect
23. Suppose that the Fed pursues an expansionary monetary policy.
Which of the following statements best explains the transmission mechanism in an open economy?
24. Contractionary monetary policy causes the
25. The net export effect of contractionary monetary policy predicts that a country's
26. Contractionary monetary policy by the Fed can be hampered by
27. As a result of monetary policy of the Fed, the dollar appreciated and the amount of exports decreased. Which of the following Fed policies could have caused this outcome?
28. Suppose that, initially, the U.S. economy was in an aggregate demand-aggregate supply equilibrium at point A along the aggregate demand curve AD in the diagram. Now, the Fed has conducted open market sales of U.S. government securities. This happens to have no measurable effects on either the short-run or the long-run aggregate supply curve in the United States. It does, however, influence U.S. aggregate demand.
As a result of this open market sales of U.S. government securities, the AD curve will shift to
No comments:
Post a Comment