14 Which of the following is true regarding the consumer price index (CPI) (A) The CPI measures the amount of imports Interest Rate iz purchased by domestic consumers (B) The CPI measures prices of all consumer goods and services produced in the economy (C) The CPI measures prices of selected raw materials purchased by businesses Demand for (D) The CPI measures prices of a specific Money market basket of goods and services Q2 Q1 Quantity of Money purchased by consumers (E) The CPI measures changes in consumers' 16 Which of the following would cause the shift willingness to pay at different levels of illustrated in the money market graph above? inflation (A) A decrease in the discount rate 15 A rise in a nation's real interest rate might be (B) A decrease in the required reserve ratio fueled by which of the following events? (C) A depreciating dollar causing an increase (A) An increase in taxes on consumer goods in the supply of dollars in foreign (B) A decrease in government spending exchange markets (C) A purchase of government bonds by the (D) The Federal Reserve selling bonds on the country's central bank open market (D) A perceived increase in the country's (E) An increase in taxes on capital goods political and economic turmoil 17 Given a required reserve ratio of 0.10, (E) An increase in the marginal propensity to suppose that Paula's bank has $50,000 in save on the part of the country's citizens demand deposits and has loaned out all of its excess reserves. If Paula withdraws $2,000 15 Skip this question. Thank you for supporting from the bank how much does her bank need ACDC Econ and buying the Ultimate Review to increase its reserves to meet the reserve Packet. Which of the following is the next requirement? course of action if someone posted this online (A) $1,000 or gave it to you for free? (B) $1,800 (A) Explain to that person that preventing (C) $2,000 entrepreneurs form earning profit (D) $3,000 decreases their incentive to innovate (E) $5,000 B) Remind them that no one wants to date people that have no sense of right or 18 Which of the following is the best definition wrong. of disposable income? (C) Tell them that they are stealing from Mr. (A) Income minus autonomous consumption Clifford (B) Nominal GDP minus net exports (D) Ask them politely to do the right thing (C) Income minus tax liabilities (E) All of the above (D) Income plus consumers spending (E) Income minus savings