30) Refer to Table 13.3. The required reserve ratio is: A) 6%. B) 8%. C) 5%. D)

Question

30) Refer to Table 13.3. The required reserve ratio is: A) 6%.   B) 8%.   C) 5%.   D) 7%.

29) ______

31) When the Fed is conducting quantitative easing, it is directly trying to influence: A) the U.S. national debt.   B) the core inflation rate. C) the fed funds rate.   D) the long term interest rates.

31) ______

32) Which of the following is the tool most used by the Fed to control the money supply in the US? A) open market operations   B) the discount rate C) the reserve requirement   D) All of these are used equally often.

33) When inflation increases, the:   33) ______ A) the quantity demanded for money decreases. B) the demand for money decreases. C) the quantity demanded for money increases.

D) demand for money increases.

Table 13.3

30) ______

34) A depreciation of the U.S. dollar will likely cause U.S. exports to ________ and U.S. imports to ________.   34) ______

A) decrease; decrease   B) increase; decrease C) increase; increase   D) decrease; increase

35) In macroeconomics, the "long run" denotes the time period:   35) ______ A) when all prices fully adjust.   B) less than one year. C) within the same fiscal year.   D) when some prices are sticky.

36) Suppose that potential output is $5 trillion and real GDP is currently $5.5 trillion. In the long run, we would expect that:   36) ______

A) the price level will rise.   B) wages and input prices will fall.C) real GDP will rise.   D) all of the above

37) Refer to Figure 15.1. If the wage rate can easily adjust to clear the market, then if the wage rate is currently at $12: 37) ______

A) the wage rate will increase to eliminate the surplus. B) the wage rate will increase to eliminate the shortage. C) the wage rate will decline to eliminate the surplus. D) the wage rate will decline to eliminate the shortage.

38) The expectations Phillips curve shows the inverse relationship between inflation and unemployment when:   38) ______

A) the unemployment rate is above the natural rate. B) we take into account expectations of inflation. C) the economy experiences no inflation. D) the economy experiences high inflation.

39) Which of the following will shift the natural rate of unemployment? A) changes in the state of the economy B) changes in the age structure of the labor force C) changes in labor productivity

39) ______

D) all of the above

40) If a government currently has a budget deficit: A) government expenditures exceed revenues. B) it does not necessarily have a debt. C) its debt is increasing.

D) all of the above

Explanation / Answer

30.) Required Reserve ratio = Required/Deposits = 40,000/500,000 = 0.08 = 8% SO B) 8%

31.) D) the long term interest rates

32.) D) All of these are used equally often

33.) D) demand for money increases.

34.) B) increase; decrease

35.) A) when all prices fully adjust.

36.) D) all of the above

37.) C) the wage rate will decline to eliminate the surplus.

38.) A) the unemployment rate is above the natural rate

39.) D) all of the above

40.) D) all of the above

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.