1. Which of the following is not a criticism of fiscal policy?

a. Operations Lag

b. Recognition Lag

c. Political Pressure

d. Income Distribution Lag

2. Which of the following is NOT a function of Federal Reserve Bank?

a. Lender of Last Resort

b. Determine Tax Policy

c. Set the Reserve Ratio

d. Issue Currency

3. Which of the following would be considered expansionary Monetary Policy?

a. Raising the Reserve Ratio

b. Cutting taxes.

c. Buying Securities

d. Raising the discount Rate

4. Which would be considered an investment according to economists?

a. The buying of shares of an Edward Jones mutual funds

b. The selling of IBM corporate bonds

c. The purchase of a new production robot by Ford Motor Company

d. The purchase of stock in MacDonald's