All of the above

20. A lower money supply leads to

higher income

higher prices

higher employment

Higher interest rate

none of the above

21. An increase in the mpc will

make the leakages curve steeper

shift the leakages curve outward

Make the leakages curve flatter

shift the leakages curve inward

have no effect on the leakages curve

22. When investment is very sensitive to the interest rate

the more effective will be fiscal policy

The more effective will be monetary policy

the more effective will be both fiscal and monetary policy

the less effective will be both fiscal and monetary policy

have no effect on the effectiveness of either fiscal or monetary policy

23. A combination of contractionary fiscal policy and expansionary monetary policy

raises unemployment, lowers investment

raises unemployment, can't predict effect on investment

raises investment, lowers unemployment

raises investment, can't predict effect on unemployment

doesn’t change investment, lowers unemployment

24. An economy is in internal balance when (the)

balance of payments surplus is zero

domestic interest rates = foreign ones

Output equals potential output

current account = the capital account

budget is balanced

25. An increase in foreign income will cause a country's

Exports to rise

imports to rise

exports to fall

imports to fall

true answers are (a) and (b)

26. Which of the following transactions will increase the US's balance of payments, except

The sale of 2 airplanes to Greece.

The sale of 3,000 shares of General Motors stock to investors abroad.

The purchase of 1,000,000 acres of the Brazilian rainforest by US conservationists.

The sale of Rockefeller Center to Japanese investors.

The purchase of a haircut and a manicure in the US by a German tourist.

27. If an economy has a marginal propensity to consume of 0.9 and there is an income tax (t) of 0.25, and if its imports (Im) and exports (Ex) are given by the functions: Im = + 0.1Y, Ex = the $20 increase in exports will increase output by:

(A) $200 (B) $180 (C) $100 (D) $80 (E) $50

28. Money supply increases if there is an increase in

inflation

public's desire to hold currency instead of deposits

amount of excess reserves that banks hold

income

Дата добавления: 2015-10-30