Econ Quiz 12

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QZ12016|
| Economic variables whose values are measured in monetary units are called| |
| Student Response|
A.| dichotomous variables.|
B.| nominal variables.|
C.| classical variables.|
D.| real variables.|
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Score:| 0.25/0.25|
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2.| QZ12010|
| Suppose the money market,drawn with the value of money on the vertical axis, is in equilibrium. If the money supply increases, then at the old value of money there is| |
| Student Response|
A.| a shortage that will increase spending.|
B.| a shortage that will reduce spending.|
C.| a surplus that will increase spending.|
D.| a surplus that will reduce spending.|
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Score:| 0.25/0.25|
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3.| QZ12013|
| Open-market purchases by the Fed make the money supply| |
| Student Response|
A.| increase, which makes the value of money increase.|
B.| increase, which makes the value of money decrease.|
C.| decrease, which makes the value of money decrease.|
D.| decrease, which makes the value of money increase.|
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Score:| 0.25/0.25|
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4.| QZ12004|
| The classical theory of inflation|
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| Student Response|
A.| is also known as the quantity theory of money.|
B.| was developed by some of the earliest economic thinkers.| C.| is used by most modern economists to explain the long-run determinants of the inflation rate.| D.| All of the above are correct.|

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Score:| 0.25/0.25|
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5.| QZ12012|
| When the money market is drawn with the value of money on the vertical axis, the price level increases if| |
| Student Response|
A.| either money demand or money supply shifts right.|
B.| either money demand or money supply shifts left.|
C.| money demand shifts right or money supply shifts left.| D.| money demand shifts left or money supply shifts right.|
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Score:| 0.25/0.25|
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6.| QZ12009|
| When the money market is drawn with the value of money on the vertical axis,| |
| Student Response|
A.| money demand slopes up and money supply is horizontal.| B.| money demand slopes down and money supply is vertical.| C.| money demand slopes down and money supply is horizontal.| D.| money demand slope up and money supply is vertical.|

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Score:| 0.25/0.25|
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7.| QZ12023|
| According to the classical dichotomy, when the money supply doubles which of the following double?| |
| Student Response|
A.| the price level and nominal GDP|
B.| the price level and real GDP|
C.| only real GDP|
D.| only the price level|
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Score:| 0.25/0.25|
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8.| QZ12024|
| Most economists believe the principle of monetary neutrality is| |
| Student Response|
A.| relevant to both the short and long run.|
B.| irrelevant to both the short and long run.|
C.| mostly relevant to the short run.|
D.| mostly relevant to the long run.|
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Score:| 0.25/0.25|
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9.| QZ12020|
| The idea that nominal variables are heavily influenced by the quantity of money and that money is largely irrelevant for understanding the determinants of real variables is called the| |
| Student Response|
A.| velocity concept.|
B.| Fisher effect.|
C.| classical dichotomy.|
D.| Mankiw effect.|
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Score:| 0.25/0.25|
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10.| QZ12022|
| According to the classical dichotomy, which of the following is not influenced by monetary factors?| |
| Student Response|
A.| the price level|
B.| real GDP|
C.| nominal interest rates|
D.| All of the above are correct.|
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Score:| 0.25/0.25|
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11.| QZ12026|
| Based on the quantity equation, if M = 100, V = 3, and Y = 200, then P =| |
| Student Response|
A.| 1.|
B.| 1.5.|
C.| 2.|
D.| None of the above is correct.|
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Score:| 0.25/0.25|
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12.| QZ12025|
| The velocity of money is|
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