Chat with AIExam 16: The Influence of Monetary and Fiscal Policy on Aggregate Demand
Exam 1: Ten Principles of Economics347 Questions
Exam 2: Thinking Like an Economist528 Questions
Exam 3: Interdependence and the Gains From Trade413 Questions
Exam 4: The Market Forces of Supply and Demand568 Questions
Exam 5: Measuring a Nations Income428 Questions
Exam 6: Measuring the Cost of Living420 Questions
Exam 7: Production and Growth417 Questions
Exam 8: Saving, Investment, and the Financial System473 Questions
Exam 9: The Basic Tools of Finance419 Questions
Exam 10: Unemployment562 Questions
Exam 11: The Monetary System421 Questions
Exam 12: Money Growth and Inflation384 Questions
Exam 13: Open-Economy Macroeconomic Models447 Questions
Exam 14: A Macroeconomic Theory of the Open Economy375 Questions
Exam 15: Aggregate Demand and Aggregate Supply466 Questions
Exam 16: The Influence of Monetary and Fiscal Policy on Aggregate Demand416 Questions
Exam 17: The Short-Run Trade-Off Between Inflation and Unemployment367 Questions
Exam 18: Six Debates Over Macroeconomic Policy235 Questions
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Changes in monetary policy aimed at reducing aggregate demand involve decreasing the money supply or increasing the interest rate.
(True/False)
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(34) Figure 16-4. On the figure, MS represents money supply and MD represents money demand.
-Refer to Figure 16-4. Which of the following events could explain a decrease in the equilibrium interest rate from r3 to r1?
-Refer to Figure 16-4. Which of the following events could explain a decrease in the equilibrium interest rate from r3 to r1? (Multiple Choice)
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(32) An increase in the money supply decreases the interest rate in the short run.
(True/False)
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(33) Suppose that the government increases expenditures by $150 billion while increasing taxes by $150 billion. Suppose that the MPC is .80 and that there are no crowding out or accelerator effects. What is the combined effects of these changes? Why is the combined change not equal to zero?
(Essay)
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(36) If businesses and consumers become pessimistic, the Federal Reserve can attempt to reduce the impact on the price level and real GDP by
(Multiple Choice)
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(41) A decrease in government spending initially and primarily shifts
(Multiple Choice)
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(35) Monetary policy affects the economy with a long lag, in part because
(Multiple Choice)
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(30) The positive feedback from aggregate demand to investment is called
(Multiple Choice)
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(38) Describe the process in the money market by which the interest rate reaches its equilibrium value if it starts above equilibrium.
(Essay)
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(27) An increase in the money supply shifts the aggregate-supply curve to the right.
(True/False)
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(38) If, at some interest rate, the quantity of money supplied is greater than the quantity of money demanded, people will desire to
(Multiple Choice)
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(39) For the U.S. economy, which of the following is the most important reason for the downward slope of the aggregate-demand curve?
(Multiple Choice)
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(30) If the spending multiplier is 8, then the marginal propensity to consume must be 7/8.
(True/False)
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(35) Which of the following illustrates how the investment accelerator works?
(Multiple Choice)
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(34) Which of the following properly describes the interest-rate effect that helps explain the slope of the aggregate-demand curve?
(Multiple Choice)
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