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post ECO201 final exam




Question;? Question;1;2 out of 2 points;Other things the same, an;increase in the money supply cause the interest rate to rise to balance money;supply and money demand.;? Question;2;2 out of 2 points;According to Friedman and Phelps;it is appropriate to view the Phillips curve as a menu of options available to;policymakers.;? Question;3;0 out of 2 points;Purchasing-power parity means;that the prices of goods in terms of local currencies must be the same across;countries.;? Question;4;2 out of 2 points;During recessions;? Question;5;0 out of 2 points;Which of the following decreases;the natural rate of unemployment?;? Question;6;2 out of 2 points;As the price level rises, the;value of money rises.;? Question;7;2 out of 2 points;If the U.S. inflation rate is;positive and higher than the inflation rate in Australia over the next few;years then;? Question;8;2 out of 2 points;If Americans decided to save a;larger fraction of their income, the interest rate would fall and the dollar;would depreciate.;? Question;9;2 out of 2 points;As inflation rises, people choose;to hold less money. The resources used to reduce money holdings are called shoe;leather costs.;? Question;10;2 out of 2 points;If firms and businesses became;more optimistic about the future, what would happen to prices and output in the;short run?;? Question;11;2 out of 2 points;The demand curve for dollars in;the market for foreign-currency exchange is based on the logic that a decrease;in the exchange rate makes;? Question;12;0 out of 2 points;Under the assumptions of quantity;theory, if the money supply increases by 3 percentage points which of the;following increases by 3 percentage points?;? Question;13;0 out of 2 points;Suppose the price of the product;you sell stays the same, but the prices of other goods and services rise, this;means that the;? Question;14;0 out of 2 points;In the United States during the;1970's, expected inflation rose substantially. This rise was due entirely to a;supply shock not to higher money supply growth.;? Question;15;0 out of 2 points;Other things the same, if the;U.S. dollar appreciates, then U.S. goods become;? Question;16;0 out of 2 points;The long-run Phillips curve;implies that monetary policy influences nominal but not real variables.;? Question;17;2 out of 2 points;According to the economist's;definition, money includes only the few types of wealth that are regularly;accepted by sellers in exchange for goods and services.;? Question;18;0 out of 2 points;According to the long-run;Phillips curve what are the long-run effects of an increase in the money supply;growth rate?;? Question;19;0 out of 2 points;If the U.S. were to impose an;import quota on CD players;? Question;20;2 out of 2 points;When the Fed announces a target;for the federal funds rate it essentially accommodates the day-to-day shifts in;money demand by adjusting the money supply accordingly.;? Question;21;0 out of 2 points;The recession of 2008-2009 was;associated with a decrease in aggregate demand.;? Question;22;2 out of 2 points;National saving is the source of;the supply of loanable funds in the open-economy macroeconomic model.;? Question;23;2 out of 2 points;The Fed's primary tool to change;the money supply is open-market operations, the buying and selling of bonds.;? Question;24;0 out of 2 points;If some firms have sticky prices;and the price level raises more than had been anticipated, then in the short;run those firms with sticky prices will have;? Question;25;0 out of 2 points;Classical theory points to money;supply growth as the primary determinant of;? Question;26;0 out of 2 points;Money that has value as a good is;called fiat money.;? Question;27;0 out of 2 points;If the U.S. put an import quota;on refrigerators, it would;? Question;28;0 out of 2 points;Which of the following best;illustrates money's use as a unit of account?;? Question;29;2 out of 2 points;A mutual fund in China buys;$100,000 of bonds sold by a U.S. corporation. This is an example of;? Question;30;0 out of 2 points;If aggregate demand shifts right;farther than expected, then;? Question;31;0 out of 2 points;Which of the following is;included in M2 but not M1?;? Question;32;2 out of 2 points;An increase in the interest rate;increases the opportunity cost of holding money, so the quantity of money;demanded falls.;? Question;33;0 out of 2 points;Which of the following Fed;actions both increase the money supply?;? Question;34;0 out of 2 points;If the government of a foreign;country chooses to purchase large quantities of U.S. assets, which of the;following happens?;? Question;35;2 out of 2 points;According to rational;expectations if the government made a credible commitment to a policy of low;inflation, people would be rational enough to lower their expectations of;inflation immediately. The short run Phillips curve would shift downward and;the economy would reach low inflation quickly.;? Question;36;2 out of 2 points;Net capital outflow equals net;exports.;? Question;37;0 out of 2 points;If consumers and businesses;became more pessimistic about the future of the economy, the government could;try to stabilize output by;Selected;Answer;decreasing government expenditures. The primary objection to;this is that there are lags in implementing fiscal policy.;Answers: decreasing;government expenditures. The primary objection to this is that an increase in;government expenditures has no impact on the economy.;decreasing;government expenditures. The primary objection to this is that there are lags;in implementing fiscal policy.;increasing;government expenditures. The primary objection to this is that an increase in;government expenditures has no impact on the economy.;increasing government expenditures. The primary objection to;this is that there are lags in implementing fiscal policy.;Response Feedback;See section: Using Policy to Stabilize the Economy. If;consumers and businesses become pessimistic the aggregate demand curve shifts;to the left. An increase in government expenditures shifts the aggregate demand;curve to the right. While in theory this should stabilize the economy it may;take a long time to enact policy. Because of the political process the lag in;implementing fiscal policy can be long. By the time the change in fiscal policy;is passed and ready to implement, the condition of the economy may well have;changed.;? Question;38;0 out of 2 points;During the financial crisis and;recession of 2008-2009;? Question;39;0 out of 2 points;Net capital outflow is determined;by;? Question;40;0 out of 2 points;A U.S. retail store uses dollars;to purchase Yuan (Chinese currency) it then uses all of these Yuan to buy toys;from a Chinese firm. Overall these transactions have;? Question;41;2 out of 2 points;An open economy can only finance;its investment purchases with domestic saving.;? Question;42;2 out of 2 points;At a price level below;equilibrium people want to hold;? Question;43;2 out of 2 points;Which of the following both;decrease the money supply?;? Question;44;0 out of 2 points;Other things the same, an;increase in the price level shifts money demand;? Question;45;2 out of 2 points;If the short-run aggregate supply;curve were to shift left, prices and output would fall.;? Question;46;2 out of 2 points;Short-run fluctuations in output;and the price level should be viewed as deviations from the continuing long-run;trends of output growth and inflation.;? Question;47;0 out of 2 points;In the market for foreign;currency-exchange an increase in the demand for dollars would cause the real;exchange rate to fall.;? Question;48;2 out of 2 points;Nearly all hyperinflations follow;the same pattern: high government spending is financed by increases in the;money supply.;? Question;49;2 out of 2 points;How many members of the Board of;Governors are voting member of the FOMC?;? Question;50;0 out of 2 points;In 2008 the U.S. budget deficit;increased. According to the open-economy macroeconomic model


Paper#56013 | Written in 18-Jul-2015

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