Trang chủ 22. Test - Economics - No 18

The theory which calls for reduction in marginal tax rates to stimulate the economy is known as:

Within the AD/AS model, increased consumer and investor optimism concerning the future will lead to


Suppose most individuals expect inflation to increase substantially next year. Which of the following

Will most likely occur?

A reserve requirement of 25 percent implies a potential money deposit multiplier of ________.

In an economy, the reserve requirement is 15%. If a bank has deposits of $400 million, loans of $364

Million and reserves of $84 million, the excess reserves equal:

A budget is judged to be expansionary or restrictive based on:

Frictional unemployment

The nation commences a project called "The Better Society" by which the government will use deficit

Spending to try to eradicate poverty. Which of the following economic variables is most likely to

Increase consistently for the duration of this policy?

Congress recently passed a retro-active tax-cut, causing all tax payers to receive $100 checks from

The Treasury. Susan receives her check, but believes that the tax cut will be repealed next year and

Anticipates owing the $100 back to the government next April. How will this most likely impact Susan's


If the marginal propensity to consume (MPC) is .6, what is the expenditure multiplier?

Which of the following events will increase GDP?

When people speak of the labor force participation rate, they are actually talking about the percentage


Which of the following is/are components of M2 money supply?

I. Traveler's checks

II. Small money market deposits

III. Currency

IV. Small denomination cds

Frictional unemployment refers to the unemployment due to:

Which of the following conditions would be necessary for tax hikes to be an effective fiscal policy


I Government debt high enough to be negatively impacting interest rates

II Tax hikes are concentrated among the wealthy

III The legislation can be enacted and implemented well in advance of particularly high inflation.

 IV Inflation is currently abnormally high

Consider an economy for which the government budget is in balance when the economy operates at

Long-run capacity. If policy makers do not alter either tax rates or expenditure programs, during a


Credit card balances are part of which of the following?

Use the table below to choose the correct answer.

Income                   1000        1200      1400

Consumption      800                960       1120


A decrease in nominal GDP at a constant money supply will ________ money interest rate.

Which of the following will most likely decrease the natural unemployment?