Question 1

Figure 15-1
  
-Refer to the Figure 15-1.Which of the following is most likely to happen if the interest rate is equal to 4?

Accepted Answer

A) There is excess demand for money, and the interest rate will fall. 
B) There is excess supply of money, and the interest rate will rise. 
C) There is excess demand for money, and the interest rate will rise. 
D) There is an excess supply of money, and the interest rate will fall. 
A) There is excess demand for money, and the interest rate will fall. 
B) There is excess supply of money, and the interest rate will rise. 
C) There is excess demand for money, and the interest rate will rise. 
D) There is an excess supply of money, and the interest rate will fall.

Question 2

Which of the following defines the government purchases multiplier?

Accepted Answer

A) 1/MPC 
B) 1/(1 - MP
C)  
C) MPC/(1 - MP
C)  
D) (1 - MP
C) /MPC 
A) 1/MPC 
B) 1/(1 - MP
C)  
C) MPC/(1 - MP
C)  
D) (1 - MP
C) /MPC

Question 3

If the multiplier is 6,what is the MPC?

Accepted Answer

A) 1/6 
B) 1/2 
C) 4/5 
D) 5/6 
A) 1/6 
B) 1/2 
C) 4/5 
D) 5/6

Question 4

In principle,the government could increase the money supply or government expenditures to try to offset the effects of a wave of pessimism about the future of the economy.

Accepted Answer

A) True 
 B)False

Figure 15-1 -Refer to the Figure 15-1.Which of the following is most likely to happen if the interest rate is equal to 4?

Which of the following defines the government purchases multiplier?

If the multiplier is 6,what is the MPC?

In principle,the government could increase the money supply or government expenditures to try to offset the effects of a wave of pessimism about the future of the economy.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains from Trade

The Market Forces of Supply and Demand (PART 1)

The Market Forces of Supply and Demand (PART 2)

Measuring a Nation's Income

Measuring the Cost of Living

Production and Growth

Saving,Investment,and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Short-Run Tradeoff between Inflation and Unemployment

Five Debates over Macroeconomic Policy

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Exam 15: The Influence of Monetary and Fiscal Policy on Aggregate Demand

Figure 15-1 -Refer to the Figure 15-1.Which of the following is most likely to happen if the interest rate is equal to 4?

Which of the following defines the government purchases multiplier?

If the multiplier is 6,what is the MPC?

In principle,the government could increase the money supply or government expenditures to try to offset the effects of a wave of pessimism about the future of the economy.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains from Trade

The Market Forces of Supply and Demand (PART 1)

The Market Forces of Supply and Demand (PART 2)

Measuring a Nation's Income

Measuring the Cost of Living

Production and Growth

Saving,Investment,and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Short-Run Tradeoff between Inflation and Unemployment

Five Debates over Macroeconomic Policy

Filters