Econ Quiz 12

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. | | Score: | 0.25/0.25 | | | 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. | | Score: | 0.25/0.25 | | | 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. | | Score: | 0.25/0.25 | | | 4. | QZ12004 | | The classical theory of inflation | | | 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. | | Score: | 0.25/0.25 | | | 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. | | Score: | 0.25/0.25 | | | 6. | QZ12009 | | When the money market is drawn with