ECO 372 Week 5 Quiz | Assignment Help | University Of Phoenix
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- 16 Apr 2019
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ECO 372 Week 5 Quiz | Assignment Help | University Of Phoenix
1.
The graph below depicts an economy where an increase in aggregate demand has caused inflation. The economy's current level of real GDP (Y2) is above its long-run equilibrium. This is illustrated by the long-run aggregate supply curve (LRAS) and a price level (P2) above the equilibrium value of Pe.
Which of the following is an example of an
automatic stabilizer that would help this economy move toward full employment
again?
2.
The existence of lags in designing and implementing
fiscal policy helps illustrate some of the limitations of fiscal policy aimed
at easing the burdens of a recession.
Which of the following statements best
describes a situation when fiscal policy is more appropriate?
3.
When the federal government
changes purchases and/or taxes to stimulate the economy or rein in inflation,
such policy is
4.
If the U.S. Congress passes legislation to raise taxes to
control demand-pull inflation, then this would be an example of a(n)
5.
If the government wishes to increase the level of real GDP, it
might reduce
6.
Payments made by the
government that do not require an exchange of economic activity in return are
also known as
7.
Using fiscal policy to
stabilize the economy is difficult because
8.
When the federal
government uses taxation and purchasing actions to stimulate the economy it is
conducting
9.
The lag between the time that the need for fiscal action is
recognized and the time action is actually taken is referred to as the
10.
The intent of contractionary fiscal policy is to
11.
The set of fiscal policies that would be most contractionary
would be a(n)
12.
When changes in taxes and government
purchases occur in the economy without explicit action by Congress, such
changes are referred to as
13.
Fiscal policy is enacted through changes in
14.
If Congress passes
legislation to increase government purchases to counter the effects of a
recession, then this would be an example of a(n)
15.
If taxes and
government expenses did not vary with income, then income would
16.
When the federal funds rate increases,
banks make:
17.
a. The discount rate is the:
b. If the Fed were to decrease the discount
rate, banks will borrow:
18.
Which of the monetary policy tools can alter both the level of
excess reserves and the money multiplier?
19.
Which of the following
is a tool of monetary policy often used by the Fed for altering the reserves of
commercial banks?
20.
The interest rate that banks charge one another for the loan of
excess reserves is the _____.
21.
If the Fed sells government securities to the general public in
the open market, the _____.
22.
The interest rate that
the Fed charges on loans made directly to banks is called _____.
23.
The interest rate at which the Federal Reserve Banks lend to
commercial banks is called the _____.
24.
The lending ability of
commercial banks increases when the _____.
25.
Lowering the discount rate has the effect of _____.
25.
Lowering the discount rate has the effect of _____.
27.
If the Board of
Governors of the Federal Reserve System increases the reserve requirement, this
change will _____.
28.
Which of the following statements is true?
29.
During the Christmas
shopping season, the demand for money increases significantly. To offset the
increase in money demand, the Fed must ______ the money supply, which will put
______ pressure on nominal interest rates.
30.
The fundamental objective of monetary policy is to assist the
economy in achieving a _____.
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