ECO 372 Final Exam

Topics: Monetary policy, Inflation, Central bank Pages: 3 (1897 words) Published: October 29, 2014
ECO 372 Final Exam 1).The largest source of household income in the U.S. is obtained from2) The market where business sell goods and services to households and the government is called the3) Real gross domestic product is best defined as4) Underemployment includes people5) The Bureau of Economic Analysis is responsible for which of the following6) The Federal Reserve provides which of the following data7) Consider if the government instituted a 10 percent income tax surcharge. In terms of the AS/AD model, this change should have8) If the depreciation of a countrys currency increases its aggregate expenditures by 20, the AD curve will9) Aggregate demand management policies are designed most directly to10) Suppose that consumer spending is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model11) According to Keynes, market economies12) The laissez-faire policy prescription to eliminate unemployment was to13) In the AS/AD model, an expansionary monetary policy has the greatest effect on the price level when it14) The Federal funds rate15) What tool of monetary policy will the Federal Reserve use to increase the federal funds rate from 1 to 1.2516) If the Federal Reserve increases the required reserves, financial institutions will likely lend out17) Suppose the money multiplier in the U.S. is 3. Suppose further that if the Federal Reserve changes the discount rate by 1 percentage point, banks change their reserves by 300.To increase the money supply by 2700 the Federal Reserve should18) If the Federal Reserve reduced its reserve requirement from 6.5 percent to 5 percent. This policy would most likely19) A country can have a trade deficit as long as it can20) A weaker dollar21) In the short run, a trade deficit allows more consumption, but in the long run, a trade deficit is a problem because22) Considering an economy with a current trade deficit and considering only...
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