7:20PM Wed Nov 29 II- -" "5' 97% (+1- 8 elearn.tnstate.edu a DIL Quizzes Economics Principles I... Exam 4 0 3:39:04 remaining X Question 11 (2 points) A consumption function shows 0 b. A relationship between income and expenditure at the household level 0 a. How people spend their disposable income on goods and services 0 d. How people spend their income before they pay any taxes 0 c. A 45 degree straight line through the origin Question 12 (2 points) An example of a positive Demand shock will be an overall increase in the stock prices that is, say Dow Jones Index rises to 38,000 by the end of December, 2023 Question 13 (2 points) There is No Policy that the Federal Reserve can apply at this time to tame the Inflation Question 14 (2 points) Price 7221PM Wed Nov 29 II- '1-? 97% (+2- AA 6 elearntnstateedu E}3 O -- Systems Access a [ML Quizzes - Economics Principles I... w Dashboard Exam 4 0 3:38:56 remaining X Question 15 (2 points) A Multiplier is defined as O a. Something that multiplies automatically throughout the economy Obi/(lMPC) O cl. A process that shows how an economy moves from one equilibrium level to another Q c. 1/ (1 - GDP) Question 16 (2 points) The economy is said to be in income-expenditure equilibrium when 0 a. Aggregate output measured by real GDP is equal to Planed aggregate spending Q d. None of the above O c. Planned and unplanned investment expenditure is same as aggregate consumption expenditure 0 b. Aggregate demand intersects the long-run aggregate supply curve Question 17 (2 points) Suppose US government adopts a policy that all unemployed people can withdraw from their retirement accounts (assuming that they have a retirement account) without any penalty for early withdrawal and spend however they may deem appropriate what will this policy do to the aggregate demand curve? 0 b. Push it to the left Q d. Make it vertical 0 a. Push it to the right O c. Make it horizontal E3 7:22PM Wed Nov 29 II- -"' 1;- 98% (+2- AA 6 elearn.tnstate.edu E}3 O -- Systems Access a [ML Quizzes - Economics Principles I... w Dashboard Exam 4 0 3:37:49 remaining X Question 18 (2 points) It is believed that the Fiscal policies are more effective than the Monetary policies Question 19 (2 points) Suppose the US government decides to lower the Personal income taxes across the board by 5% many economists predict that there will be a 5% increase in the aggregate demand O c. It is not exactly certain how much the aggregate demand will increase 0 d. The marginal propensity to consume will reduce by 5% O b. They have no clue how the real economy works O a. They are correct Question 20 (2 points) The Short-run aggregate supply (AS) curve shows various levels of Real output (GDP) at different aggregate price levels Question 21 (2 points) A decrease in a recessionary gap can be achieved by a contractionary fiscal policy Question 22 (2 points) 7:24PM Wed Nov 29 II- :- 98% (+2' AA 6 elearn.tnstate.edu E}3 O -- Systems Access a [ML Quizzes - Economics Principles I... w Dashboard Exam 4 0 3:35:52 remaining X Question 21 (2 points) A decrease in a recessionary gap can be achieved by a contractionary fiscal policy Question 22 (2 points) The Aggregate Demand Curve shows a O a. Direct relationship between the Price Level and the quantity of aggregate output level demanded by all O b. An inverse relationship between the price level and the quantity of output level demanded by all O c. A relationship between people's income and how they purchase various quantities of goods and services 0 d. None of the above Question 23 (2 points) Which of the following is not a financial intermediary? O a. A Credit Union 0 b. A Pension Fund Manager 0 d. A Credit rating agency O c. An Investment club Question 24 (2 points) An Expansionary Monetary policy is not recommended at any time 7:24 PM Wed Nov 29 I I - '1? 98% 1*). AA 6 elearn.tnstate.edu E}3 O -- Systems Access a [ML Quizzes - Economics Principles I... w Dashboard Exam 4 0 3:35:39 remaining X A decrease in productivity in Germany will O b. Shift its aggregate supply curve to the right O a. Leave its aggregate supply curve unchanged Q d. Equilibrium wages will go up in Germany O c. Shift its aggregate supply curve to the left Question 26 (2 points) A Contractionary Monetary Policy includes the following: 0 3. Increasing the Discount rate 0 e. None of the above 0 c. Selling Government Bonds in open market 0 b. Reducing the Reserve Ratio 0 d. All of the above Question 27 (2 points) If Country A has a Multiplier of 0.8; and Country B has a multiplier of 0.9, it is fair to say that a $10 billion dollar increase in Aggregate Spending will have a larger total impact in country A. Question 28 (2 points) When Taxes are raised, in general , domestic savings typically increases and so does Investment O True G3 7:24PM Wed Nov 29 II- :- 98% (+2' AA 6 elearntnstateedu E}3 O -- Systems Access a [ML Quizzes - Economics Principles I... w Dashboard Exam 4 0 3:35:31 remaining X Question 29 (2 points) An example of an expansionary fiscal policy is O b. An increase in personal income tax rate Q a. A Budget deficit O c. A decrease in personal income taxes Q d. A decrease in defense expenditure Question 30 (2 points) Suppose you are given $800 to do whatever you want and you want to spend 80% of that and save 20%. Because of your spending the economy will add to its GDP a net amount of: 0 e. None of the above. 0 a. $8000; Q d. - $2000; O c. $9000; 0 b. $10000; Question 31 (2 points) The demand curve (function) for loanable funds shows 0 a. A direct relationship between income and amount of money people can borrow O c. How loans are given in the market place Q d. None of the above O b. An inverse relationship between interest rate and the quantity of loanable funds E3