1. Which of the following would lead to an increase in the demand for British pounds?

Select one:

a.A declining interest in British goods

b.A decrease of the U.S. price level relative to the British price level

c.A decrease in the U.S. interest rate relative to the British interest rate

d.A decrease in the exchange rate.

e.Expectations that the exchange rate will fall

2.Which of the following changes would probablynotlead to an increase in aggregate expenditure?

Select one:

a.a decrease in the income tax rate

b.an increased mood of optimism about the nation's economic prospects

c.an increase in the value of corporate stocks

d.an increase in the interest rate

e.an increase in aggregate wage income

3.In the short-run macro model, a decrease in the money supply will

Select one:

a.not affect the aggregate expenditure line

b.shift the aggregate expenditure line downward

c.move the economy to the right along the aggregate expenditure line

d.move the economy to the left along the aggregate expenditure line

e.shift the aggregate expenditure line upward

4.What is the difference between nominal and real GDP?

Select one:

a.Real GDP is adjusted for changes in the price level; nominal GDP is not.

b.Nominal GDP is adjusted for changes in the price level; real GDP is not.

c.Real GDP is adjusted for depreciation; nominal GDP is not.

d.Nominal GDP is adjusted for depreciation; real GDP is not.

e.Real GDP is adjusted for taxes and transfer payments; nominal GDP is not.

5.In the short run, an increase in real GDP will

Select one:

a.increase unit costs and decrease the price level

b.increase unit costs and increase the price level

c.decrease unit costs and decrease the price level

d.decrease unit costs and increase the price level

e.have no effect on unit costs or the price level