WEEK 1 - 5 QUIZZES
Week 5 quiz
1. In the U.S. current account, most of the trade deficit results from an excess of imported
B. merchandise
2. What is the difference between the balance of trade and the balance of payments?
A. The balance of trade is only part of the balance of trade.
3. If a government has implemented significantly higher trade tariffs, but does not want this action to affect the value of its currency, it will
B. buy foreign currency because the tariffs will tend to make the domestic currency appreciate
4. During 2007, the United States and Japan announced possible limits on Chinese imports through higher tariff rates on Chinese products. To avoid these limits, China would have to
D. increase the value of the yuan and decrease its trade surplus
5. If a country wants to prevent its exchange rate from falling, it could
B. place restrictions on imports
6. All other things being equal, an increase in trade restrictions on imports wil
A. reduce the demand for foreign currency, causing it to appreciate
Week 4 quiz
1. In the long-run framework, budget surpluses
c. are better than budget deficits over the long-run because unlike budget deficits, they increase savings and investment
2. The budget deficit or surplus is
c. difficult to measure and can be defined legitimately in several ways
3. Deficits and surpluses are best viewed as
B. a summary measure of a nation 's fiscal policy
4. Suppose the government increases spending by $30 billion and raises taxes at by $20 billion at the same time. Then,
B. interest rates will most likely increase
5. Because automatic stabilizers lower transfer payments and raise tax receipts as an economy recovers from a recession, they
A. slow down the pace of an economic recovery
6. Most of the government budget is mandatory spending through programs like Medicare and Social Security, and much of the rest is politically difficult to alter. Because of this,
C. the amount of
1. In the U.S. current account, most of the trade deficit results from an excess of imported
B. merchandise
2. What is the difference between the balance of trade and the balance of payments?
A. The balance of trade is only part of the balance of trade.
3. If a government has implemented significantly higher trade tariffs, but does not want this action to affect the value of its currency, it will
B. buy foreign currency because the tariffs will tend to make the domestic currency appreciate
4. During 2007, the United States and Japan announced possible limits on Chinese imports through higher tariff rates on Chinese products. To avoid these limits, China would have to
D. increase the value of the yuan and decrease its trade surplus
5. If a country wants to prevent its exchange rate from falling, it could
B. place restrictions on imports
6. All other things being equal, an increase in trade restrictions on imports wil
A. reduce the demand for foreign currency, causing it to appreciate
Week 4 quiz
1. In the long-run framework, budget surpluses
c. are better than budget deficits over the long-run because unlike budget deficits, they increase savings and investment
2. The budget deficit or surplus is
c. difficult to measure and can be defined legitimately in several ways
3. Deficits and surpluses are best viewed as
B. a summary measure of a nation 's fiscal policy
4. Suppose the government increases spending by $30 billion and raises taxes at by $20 billion at the same time. Then,
B. interest rates will most likely increase
5. Because automatic stabilizers lower transfer payments and raise tax receipts as an economy recovers from a recession, they
A. slow down the pace of an economic recovery
6. Most of the government budget is mandatory spending through programs like Medicare and Social Security, and much of the rest is politically difficult to alter. Because of this,
C. the amount of