PLEASE HELP ME TO ANSWER THIS WITH "THE CORE ECONOMY" UNIT 14.4 TO 14.8

QUESTION 1:

REPLACE ANSWER BY THE ANSWER.

The change in total imports associated with a change in total income is referred to as theANSWER(four words).

QUESTION 2:

If taxes and imports are added to the aggregate economy, the size of the multiplier increases.

Select one True or False

QUESTION 3:

Whichoneof the following statements is true?

Select one:

a.A decrease in exports will lead to an upward shift in the aggregate demand curve.

b.A lower marginal propensity to import will reduce the size of the multiplier.

c.A higher marginal propensity to consume will reduce the size of the multiplier.

d.An increase in the tax rate reduces the size of the multiplier.

QUESTION 4:

Whichoneof the following statements regarding fiscal policy is correct?

Select one:

a.Just as a family worried about mounting debts should cut spending and save more, an economy should adopt austerity measures when its debt level is high to restore its public finances to balance.

b.Unemployment benefits and taxes automatically increase government spending and cut taxation in a downturn, while they trim spending and raise taxes in a boom. These are therefore automatic stabilisers.

c.In a recession, the aim of a government fiscal expansion is to over-ride the effects of automatic stabilisers.

d.Expansionary fiscal policy (e.g. increasing the government deficit or reducing the surplus) always has a stabilising effect on the economy.

QUESTION 5:

Whichoneof the following statements is correct?

Select one:

a.Automatic stabilizers refer to the fact that economic shocks are partly offset by households smoothing their consumption in the face of variable income.

b.The multiplier on a fiscal stimulus is higher when the economy is functioning at full capacity.

c.Maintaining fiscal balance in a recession helps to stabilize the economy.

d.A fiscal stimulus can be implemented by raising spending to directly increase demand, or by cutting taxes to increase private sector demand.

QUESTION 6:

REPLACE ANSWER BY THE ANSWER.

The sum of all the bonds the government has sold over the years to finance its deficits, minus the ones that have matured refers toANSWER (two words).

QUESTION 7:

The equation for the marginal propensity to consume is:

Select one:

a.Change in consumption divided by change in income.

b.Change in consumption divided by total income.

c.Consumption divided by income.

d.Consumption divided by sales.

QUESTION 8:

Spending on investment is a function of the interest rate and the expected pre-tax rate of profit.

Select one True or False

QUESTION 9:

REPLACE ANSWER BY THE ANSWER.

An increase in government expenditure refers to an increase inANSWER spending (one word).

QUESTION 10:

Whichtwoof the following statements are correct regarding the multiplier?

Select one or more:

a.If firms anticipate that the government's fiscal policy will be effective, then the multiplier will be higher.

b.Economists tend to agree on their estimates of the multiplier.

c.If households anticipate that increased government spending will be funded by future tax increases, then the multiplier will be higher.

d.Reverse causation can be a problem when estimating the multiplier empirically.