ic stabilizers refer to spending and taxes that totly inrease or decreave siong
ID: 1129099 • Letter: I
Question
ic stabilizers refer to spending and taxes that totly inrease or decreave siong with te business cycle. objectives. policy objectives. business cycle in federal taxes and purchases that are intended to B) C) changes in D) the money supply and interest rates that automatically increase or the money supply and interest rates that are intended to achieve macroeconomic winh the definition of the money supply is 32) The Federal Reserve's narrowest B) M1. C) M2. A) MO D) M3 economy 33) The long-run aggregate supply curve will shift to the right if the A) net exports decrease. C) has a decrease in population B) experienices techinological change. D) experiences high levels of inflation. 34) The quantity theory of money predicts that, in the long run, inflation results from the 34) A) money supply growing at a faster rate than real GDP B) velocity of money growing at a faster rate than real GDP C) velocity of money growing at a lower rate than real GDP D) money supply growing at a lower rate than real GDP 5) Expansionary fiscal policy involves A) increasing taxes or decreasing government purchases B) decreasing the money supply and increasing interest rates. C) increasing government purchases or decreasing taxes D) increasing the money supply and decreasing interest rates 35) A) When the price level falls, the nominal value of household wealth falls B) When the price level falls, the nominal value of household wealth rises C) When the price level falls, the real value of household wealth rises D) When the price level falls, the real value of household wealth falls. 36) Which of the following best describes the 'wealth effect? 37) 37) The process of bundling loans together and buying and selling these bundles in a secondary financial market is called A) fractional reserve lending C) open market operations B) seigniorage. D) securitization. 38) Which of the following is not a function of the Federal Reserve System, or the "Fed? A) insuring deposits in the banking system B) performing check clearing services C) taking actions to control the money supply D) acting as a banker's bank E) acting as a lender of last resortExplanation / Answer
Ans:
31) Option A
Government spending and taxes that automatically increase or decrease along with the business cycle.
Automatic stabilizers offset fluctuations in economic activity and stabilize economic cycles without explicit government action.
32) Option B - M1
M1 includes coins and currency along with demand deposits and checking deposits.
33) Option B
experiences technological change
The long run aggregate supply curve will shift to the right when there is a technological advancement in the economy.
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