Q6) Suppose the Reserve Bank of Australia pursues contractionary monetary policy. This policy move will tend to cause:

Select one:

a.a decrease iniin the medium run and no change inrin the medium run.

b.an increase iniin the medium run and no change inrin the medium run.

c.no change iniin the medium run and an increase inrin the medium run.

d.a decrease iniin the medium run and a decrease inrin the medium run.

e.no change iniin the medium run and a decrease inrin the medium run.

Q7) Which of the following will cause an increase in current consumption?

Select one:

a.An increase in financial wealth.

b.An increase in human wealth.

c.An increase in current disposable income.

d.All of the above.

e.Both A and B.

Q 18) Which of the following will not cause aggregate private spending to decrease?

Select one:

a.A decrease in expected future output.

b.An increase in expected future real interest rates.

c.An increase in government spending.

d.An increase in future taxes.

e.A decrease in government spending.

Q20)Assume that an economy experiences both positive population growth and technological progress. In this economy, which of the following is constant when balanced growth is achieved?

Select one:

a.K.

b.AN.

c.K/N.

d.Y.

e.Y/AN.