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Which of the following is an example of fiscal policy? an increase in the government deficit due to more military spending in wartime. a reduction

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Which of the following is an example of fiscal policy? an increase in the government deficit due to more military spending in wartime. a reduction in the federal funds rate. a reduction in the money supply. a reduction in lump-sum taxes QUESTION 59 Which of the following is the most llquid? government bonds real estate currency shares of stock QUESTION 60 With fractional reserve banking banks can not generate profits. banks retain only a portion of their deposits in their vaults or at Federal Reserve banke. monetary policy wit be ineffective. banks can act as securdies brokers. QUESTION 61 A decrease in the interest rate will cause the investment function to shift out. planned investment spending to decrease. planned investment spending to increase: the investment function to shit in. QUESTION 62 A rovernment balanced buiget is all tederal govemment debt irrespective of who ownts it: an excess of govemment sponding over government revenues during a given time period. a situatoe in which the government's spending is exacty equal to the total taxes and othot revenves it collects during a given time period. the total value of all outstanding federal government securities What would cause a bank run? Depositors foel that the bank does not have sutficlent assets to cover their depositt. Borrowers feel that they aro being charged too high of an interest rate on their loans. Depostors feel that they are earning too low of a return on their deposits. Bank managers choose to hold more excess reiserves. QUESTION 54 When people face bounded rationality, they are likely to consider every concewable choice avaliable to them when making decisions. behave irrationally. do nothing. roly on simple rules of thumb. QUESTION 55 When the government cuts taxes. the aggregate demand curvo shifts to the right. the long-run aggregate supply curve shifts to the left. the aggregate demand curve shifs to the lef. the short-run aggregate supply curve shilts to the left. QUESTION 56 Which of the following assets are counted in M2? Ines of credit oslored by commercial banks balances in rotail mutual funds accounts gold value of outstanding bonde QUESTION 57 Which of the following is NOT an entitiement? Social Security Medicaid salaries of government employees Medcare

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