Suppose the money multiplier is 3 and the Federal Reserve Buys $300,000 dollars worth of Government securities. What will be the overall effect to the supply of money?

a. Increase by $300,000

b. Decrease by $300,000

c. Decrease by $900,000

d. Increase by $900,000

e. Increase by $100,000

If Susan is given a $500 tax-free bonus and she chooses to spend $400 of it, which of the following must be true?

a. Susan's MPC is 1.2

b. Susan's MPS is 0.2

c. Susan is saving $150 dollars of her bonus

d. None of the above

Consider an economy where the world price of oil has increased and government taxes have increased. In our AS-AD model, which statement must be true.

a. The Price level has decreased

b. The Price level has increased

c. Real GDP has decreased

d. Real GDP has increased

A leftward shift in the aggregate demand curve causes

a. A rightward movement along the short-run supply curve

b. A leftward movement along the short-run supply curve

c. A leftward shift of the short-run supply curve

d. Neither a movement along or a shift of the short-run supply curve

Which of the following is an example of monetary policy?

a. A change in immigration law

b. A change in Taxes

c. A change in Government Expenditures

d. A change in the federal funds rate

If the exchange rate of Yen per dollar is 110, how much is 1,125 yen worth in dollars?

a. $0.10

b. $123,750

c. $10.23

d. Depends on how much the euro is worth