1.A U.S. balance of trade surplus can result from

Select one:

A. an increase in exports from the United States.

B. an increase in exports to the United States.

C. an increase in imports to the United States.

D. an increase in exports by foreign nations.

E. an increase in net exports by foreign nations.

2.When Congress increases taxes, private investment is

Select one:

A. crowded out causing AD to shift less than expected.

B. crowded out causing AD to shift more than expected.

C. crowded in causing AD to shift less than expected.

D. crowded in causing AD to shift more than expected.

E. indeterminate with the information given.

3.Fiscal policy is limited when the slope of the

Select one:

A. AS curve is more vertical so the multiplier is more effective.

B. AS curve is more vertical so the multiplier is less effective.

C. AS curve is more horizontal so the multiplier is more effective.

D. AD and AS curves are more horizontal to the multiplier is more effective.

E. AD curve is more vertical so the multiplier is more effective.

4.If Congress votes to increase spending and taxes by the same amount, what is the effect on employment and interest rates?

Employment / Interest Rates

Select one:

A. Increase / Increase

B. Increase / Decrease

C. Increase / No Change

D. Decrease / Decrease

E. Decrease / No Change

5.Which of the following would be considered a discretionary fiscal policy?

Select one:

A. The Fed increases the discount rate.

B. Tax revenue increases as a result of increased employment.

C. The reserve requirement is lowered from 15% to 10%.

D. Trade restrictions on foreign manufacturers expire at the end of a fiscal year.

E. The President signs a bill that decreases personal income tax rates.