Question 1. According to the quantity theory of money, increases in the money su

Question

Question 1.
According to the quantity theory of money, increases in the money supply lead to
Question 1 answers
decreases in nominal Gross Domestic Product (GDP).
increases in taxes.
increases in the price level.
decreases in the price level.

Question 2
As interest rates rise, the quantity of money demanded
Question 2 answers
falls.
rises.
stays the same.
does not react to interest rate changes.

Question 3 t
If the source of economic instability is generally variations in spending, then the Fed should
Question 3 answers
set money supply targets.
raise taxes.
print more money.
buy gold.

Question 4 t
During the 1960s, many Keynesian economists felt that by studying the Phillips curve,
Question 4 answers
policymakers could dispense with the Federal Reserve's open-market operations.
policymakers could eliminate even frictional unemployment in the economy.
the President and Congress did not need to attempt to balance the budget.
policymakers could fine-tune the economy by selecting policies that would produce the exact mix of unemployment and inflation that suited current government objectives.

Question 5
The term "economic freedom" means
Question 5 answers
the right to own financial assets.
the right to own private property.
the right to trade goods and services.
all the above.

Question 6
Data from the World Bank show that economic growth and economic freedom are
Question 6 answers
sometimes positively related and sometimes negatively related.
totally unrelated.
directly related.
inversely related.

Question 7
The principle of comparative advantage essentially states that
Question 7 answers
some goods have high opportunity costs and low absolute costs.
specialization can reduce output rather than increase it.
there are some goods for which the opportunity costs of production are the same regardless of who produces them.
total output of an economic system is greatest when each good is produced by those who have the lowest opportunity cost of producing the good.

Question 8
Restricting imports usually leads to
Question 8 answers
a higher per capita level of real consumption.
a reduction in exports and employment.
a country producing beyond its production possibilities frontier.
a country consuming even further beyond its production possibilities frontier.

Question 9
With a pure gold standard,
Question 9 answers
a balance of payments deficit will lead to an increase in the domestic price level.
there will be a tendency for a too rapid increase in the volume of world trade.
a nation may not pursue an independent monetary policy.
an inflow of gold will reduce the money supply of a country.

Question 10
With the Bretton Woods system of international exchange rates,
Question 10 answers
the value of a country's currency was determined by its stock of gold.
there were fixed exchange rates, and countries were obligated to intervene to maintain the values of their currencies within 1 percent of par value.
the value of a country's currency was determined strictly by the laws of supply and demand.
a nation's balance of payments was eliminated.

Question 11
The balance of trade is defined as
Question 11 answers
the value of goods bought and sold in the world market.
the amount of imported capital assets.
the difference between the import and export of official reserves.
the amount of exported capital assets.

Question 12 text
Active policymaking refers to
Question 12 answers
policymaking that is carried out in response to a rule.
relying on policies that act as automatic stabilizers.
actions taken by policymakers in response to or in anticipation of some change in the overall economy.
nondiscretionary policymaking.

Explanation / Answer

1. increases in the price level. 2. rises. 3. set money supply targets 4. policymakers could eliminate even frictional unemployment in the economy. Thats about all I'll do for 175 karma. If you repost the rest into separate posts with like 1 to 3 questions each, I will answer them.

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