Question 1 1 pts Which of the following scenarios from macroeconomics would NOT have an impact on individual consumers? 0 Government providing tax incentives to homeowners 0 All of the choices would have an impact on consumers 0 Government reducing spending on defense contracts 0 The Federal Reserve lowering interest rates 0 The government providing a large agricultural subsidy to American Farmers. Question 2 1 pts Which of the following statements regarding the economic cycle is true? 0 Interest rates hit their peak early in the contraction phase 0 The trough is the height of economic prosperity in the economic cycle 0 Unemployment is highest in the expansion phase. 0 Interest rates, unemployment and growth all happen at the same time in the economic cycle 0 The Federal Reserve regulates the length of the economic cycle Question 3 1 pts Which of the following would be considered an expansionary policy? 0 A $200 tax rebate given to all tax payers O A 10% decrease in unemployment benets 0 The cancellation of a government defense contract 0 The government freezes hiring within the IRS. O The Federal Reserve increases the interest rate 5% Question 4 1 pts Question 4 1 pts Which of the following statements regarding the Federal Reserve Board is true: 0 The Fed raises interest rates to promote economic growth 0 The Fed does not affect the money supply 0 The Fed raises interest rates to decrease ination O The Fed increases the money supply by raising interest rates 0 The Fed lowers interest rates to decrease ination Question 5 1 pts Which of the following would NOT be included in the United States' Gross Domestic Product (GDP)? 0 The economic value of pornography produced in the United States 0 All of the options would be included in the US. GDP 0 International prots on U.S. owned companies 0 The value of the tobacco industry 0 The value of domestic travel paid for by the U.S. government Question 6 1 pts Which of the following statements regarding government economic intervention is true? 0 Government spending has little to do with the national economy. 0 The government only intervenes if there is an economic crisis on the horizon. O The government uses expansionary policies to increase economic growth. 0 The government never intervenes in the economy. 0 The government uses contractionary policies to increase economic growth. Question 4 1 pts Which of the following statements regarding the Federal Reserve Board is true: 0 The Fed raises interest rates to promote economic growth 0 The Fed does not affect the money supply 0 The Fed raises interest rates to decrease ination O The Fed increases the money supply by raising interest rates 0 The Fed lowers interest rates to decrease ination Question 5 1 pts Which of the following would NOT be included in the United States' Gross Domestic Product (GDP)? 0 The economic value of pornography produced in the United States 0 All of the options would be included in the US. GDP 0 International prots on U.S. owned companies 0 The value of the tobacco industry 0 The value of domestic travel paid for by the U.S. government Question 6 1 pts Which of the following statements regarding government economic intervention is true? 0 Government spending has little to do with the national economy. 0 The government only intervenes if there is an economic crisis on the horizon. O The government uses expansionary policies to increase economic growth. 0 The government never intervenes in the economy. 0 The government uses contractionary policies to increase economic growth. Question 7 1 pts Which of the following statements regarding supply shocks is true? 0 Supply shocks stall economic growth. 0 Supply shocks are a good economic indicator since they are easy to predict. 0 Supply shocks must happen in each sector of the economy to make a difference. 0 A good supply shock would be an oil embargo. 0 Supply shocks are unexpected disruptions in the economy. Question 8 1 pts Which of the following is NOT a macroeconomic indicators (as mentioned in the presentations) that consumers use to help make the best consumer decisions? 0 Business cycle information 0 All of the options are macroeconomic indicators 0 The Interest Rate Spread 0 The imputed exchange rate 0 Recent rates of ination Question 9 1 pts Which of the following statements regarding the trough of the economic cycle is true? 0 An economic cycle can be one complete movement from trough to trough. O A trough occurs when the national economic growth is negative for two quarters. O Tough is a period when economic growth is negative. 0 All of the options are true 0 Trough happens when there is a contraction of the economic cycle Question 10 1 pts Which of the following statements regarding unemployment is true? 0 A new technology that replaces workers with machines would result in cyclical unemployment. 0 Workers being laid off clue to not possessing the skill is a part of the economic cycle. 0 When the economy takes a downturn cyclical unemployment tends to rise. 0 Seasonal unemployment only happens in the winter. 0 Frictional unemployment occurs when an industry has an off season. Question 11 1 pts If a consumer were to use economic indicators mentioned in class and they believed that interest rates were about to rise, which of the following scenarios would they choose in regards to their nancial decisions? 0 Wait to renance their house even if the interest rate is lower than their locked in interest rate 0 Renance their house as soon as possible to get a lower interest rate 0 None of these options would be true 0 The consumer would believe that the economic cycle was at its trough 0 Choose an investment with a locked in interest rate