PART 1 (80 Points) MULTIPLE CHO ICE. Choose the one alternative that best comple
ID: 1130970 • Letter: P
Question
PART 1 (80 Points) MULTIPLE CHO ICE. Choose the one alternative that best completes the statement or answers the quest 1) When the interest rate rises A) planned investment falls. C) planned investment rises. B) planned investment will be unaffected. D) equilibrium income increases. 2) If the government finances its spending by selling bonds to the central bank, the monetary base will _ _ and the money supply will .. A) increase; decrease ) not change; not change B) decrease; decrease D) increase; increase 3) The velocity of money is A) the ratio of the money stock to high-powered money B) the average number of times a dollar is spent in buying financial assets. C) the average number of times that a dollar is spent in buying the total amount of final goods and services. D) the ratio of the money stock to interest rates. 4) The negative relation between investment spending and the interest rate is what gives the curve its- slope A) IS; upward C) LM; downward B) LM; upward D) IS; downward 5) An autonomous easing of monetary policy A) causes an upward movement along the monetary policy curve. B) causes a downward movement along the monetary policy curve. C) shifts the monetary policy curve upward. D) shifts the monetary policy curve downward. 6) Keynes mentioned two factors that influenced planned investment spending A) interest rates and business expectations about inflation. B) disposable income and business expectations about the future. C) interest rates and business expectations about the future. D) interest rates and disposable income. 7) The classical economists believed that if the quantity of money doubled A) prices would remain constant. e) output would double. B) prices would double. D) prices would fall.Explanation / Answer
Nite:
1) (A)
2) (D)
3) (C)
4) (D)
Note: According to Chegg policy we answered only first four questions when multiple questions are there, Thank You!
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