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31. When the Fed sells bonds, the: Federal...

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31. When the Fed sells bonds, the: Federal funds rate increases. reserve requirement falls. discount rate increases. discount rate decreases. 32. Refer to the graphs. Which of the graphs correctly labels the axes of the AS/AD model? A B C D 33. M2 is the component of the money supply that consists of M1 plus other relatively liquid assets. True. False. 34. Laissez-faire economists believe: government policies do not affect economic activity. government can implement policy proposals that can positively impact the economy. most government policies would probably make things worse. government intervention in the market is necessary for a smoothly operating economy. 35. How many regional banks are in the Federal Reserve System? 6 8 12 15 36. According to Okun's rule of thumb, if the unemployment rate rises from 6 to 9%, then we can expect that output will fall by 3 percent. rise by 6 percent. fall by 6 percent. rise by 3 percent. 37. The primary tool of monetary policy is: the discount rate. the reserve requirement. the prime rate. open market operations. 38. Gold was inconvenient as money due to which characteristic? it was not limited in supply it was not small and light it was not difficult to counterfeit All of the above 39. The marginal propensity to expend equals the ratio of: income to aggregate expenditure. the change in income to a change in aggregate expenditure. aggregate expenditure to income. the change in aggregate expenditure to a change in income. 40. The chairperson of the Federal Reserve Bank is appointed for a 4 year term can serve multiple terms is part of the Federal Open Market Committee (FOMC) All of the above

 

Paper#12632 | Written in 18-Jul-2015

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