Question 11 {Mandatory} [1 point) i Saved 43 Listen h According to the multiplier concept, an increase in government spending will raise equilibrium real lGDP by an amount that is less than the initial spending increase. Question 12 {Mandatory} [2 points) v Saved an Which of the below is a fiscal policy action that could shift the AD curve from AD to ADE? G) a} A reduction in federal government spending 0 b) A sale of securities by the Fed O C} A purchase of securities by the Fed O C\" A tax cut Question 13 (Mandatory) (2 points) Listen P AS P 2 AD 2 AD ye y2 y Which of the below is a monetary policy action that could shift the AD curve from AD to AD2? a) A sale of securities by the Fed ( b) A tax cut O c) A reduction in federal government spending O d) A purchase of securities by the FedQuestion 14 (Mandatory) (2 points) Saved Listen The term fiscal policy refers to ( a) a policy action by Congress to overrule unpopular spending increases by the President. O b) the use of fines to penalize unfair business practices. ( c) the use of government spending and taxation to influence the level of economic growth and inflation. O d) the purchase and sale of U.S. government securities to regulate the money supply. Question 15 (Mandatory) (2 points) Saved Listen A lawn care business is considering investing in new mowers, which each cost $2,000. The first mower is expected to increase the firm's profits by $200, the second by $160, the third by $120, the fourth by $80, and the fifth by $40. If the current interest rate is 5%, how many mowers should the business buy? ( a) 1 O b) 5 O c) 2 O d) 4 Oe) 3Question 16 (Mandatory) {2 points) 4' Saved 35 13 Listen : Total unemployment compensation increases during recessions with no change in benefit rates. This is an example of O 33' balanced-budget policy. 0 b) the concept of Ricardian equivalence. O C} the crowding-out effect. 6) d] an automatic stabilizer. Question 1? (Mandatory) {2 points) 35 13 Listen : Which of the following would enlarge the effect of a given purchase of securities by the Fed on aggregate demand? O 33' a decrease in the required reserve ratio 0 b) a decrease in the sensitivity of investment to the interest rate 0 '5} none of the above 0 d} a decision by banks to hold excess reserves Question 18 (Mandatory) (2 points)