Question 9 (1 point) Suppose that a national government increased deficit spending on goods and services, increasing its demand for loanable funds. In the long run, this policy would most likely result in changes in real interest rate and investment in this country. Determine the changes. OD. Increase No change OC. Increase Decrease OA. Decrease Decrease OB. Decrease Increase Question 10 (1 point) Which of the following will most likely occur as a result of an increase in labour productivity in an economy? A. An increase in output and a decrease in inflation )B. An increase in interest rates and a decrease in investment C. A decrease in both money demand and money supply D. A decrease in exports and an increase in unemploymentQuestion 11 (1 point) Under which of the following situations will the purchase of bonds by the Central Bank have the greatest effect on real GDP of an economy? O A. The required reserve ratio is high, and the interest rate has a large effect on investment spending. B. The required reserve ratio is high, and the interest rate has a small effect on investment spending. C. The required reserve ratio is low, and the interest rate has a large effect on investment spending. O D. The required reserve ratio is low, and the marginal propensity to consume is low. Question 12 (1 point) If the government simultaneously engages in expansionary monetary and fiscal policies, which of the following is the likely effect on interest rates and unemployment? OA. Increase Indeterminate O B. Increase Decrease OC. Decrease Decrease OD. Indeterminate DecreaseQuestion 21 (1 point) In an economy with lump-sum taxes and no international trade, if the marginal propensity to consume is 0.8, which of the following is true? O A. When consumption increases by RM5, investment increases by a maximum of RM1. O B. When consumption increases by RM5, savings increase by a maximum of RM1. ()C. When investment increases by RM1, income increases by a maximum of RM5. O D. When investment increases by RM1, consumption increases by a maximum of RM5.Question 13 (1 point) To counteract a recession, the Central Bank should ()A. raise the reserve requirement and the discount rate )B. sell securities on the open market and raise the discount rate )C. sell securities on the open market and lower the discount rate OD. buy securities on the open market and lower the discount rateQuestion 5 (1 point) 15. If the government increases expenditures on goods and services and increases taxation by the same amount, which of the following will occur? O)A. Aggregate demand will be unchanged. OB. Aggregate demand will increase. C. Interest rates will decrease. O)D. The money supply will decrease.Question 3 (1 point) Based on the AD-AS diagram, what effect will an increase in the world supply of oil have on real GDP and the price level? A. Decrease Increase B. Decrease Decrease C. Increase Increase OD. Increase DecreaseQuestion 2 (1 point) Saved The GDP deflator has gone down by 3% and nominal GDP has gone down by 2%. Therefore real GDP has approximately: A. Gone up by 5% O B. Gone up by 1% C. Stayed the same OD. Gone down by 5%