Eco/372

ECO 372 FINAL EXAM 1. Consider if the presidency instituted a 10% income taxation surcharge. In terms of the AS/AD mold this mixed bag should have a. moorageed the AD turn to the left wing b. shifted the AD curve to the right c. made the AD curve flatter d. made AD curve steeper 2. If the depreciation of a countrys currency additions it aggregate expenditures by 20, the AD curve ordain a. shift right by to a greater extent than 20 b. shift right by less(prenominal) than 20 c. shift right by exactly 20 d. not shift at all 3. call back that catchr expense is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model a. an increase in government expense b. an increase in taxes c. a reduction in government spending d. no counter transport in ta xes or government spending. 4. What tool of monetary insurance policy stockpile the national Reserve use to increase the federal authorized funds rate from 1% to 1.25%? A. Open-market operations B. The give notification rate C. A change in reserve requirements D. delimitation requirements 5. Suppose the money multiplier factor in the U.S. is 3.

Suppose further that if the Federal Reserve changes the discount rate by 1 percentage point, banks change their reserves by 300. To increase the money supply by 2700 the Federal Reserve should A. turn off the discount rate by 3 percentage points B. reduce the discount rate by 10 percentage points C. s! how the discount rate by 3 percentage points D. berate the discount rate by 10 percentage points 6. In the short run, a switch over deficit allows more consumption, but in the long run, a trade deficit is a problem because A. the country eventually result consume more and produce less B. the country eventually exit sell all its financial assets to foreigners C. the domestic currency forget appreciate D....If you want to get a full essay, invest it on our website: OrderEssay.net

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