11) All of the following can convey the short-term total supply curve to the rig
ID: 1153739 • Letter: 1
Question
11) All of the following can convey the short-term total supply curve to the right except
A) Increase the size of the labor force
B) Increasing the size of the capital
C) Technological progress
D) High production costs due to high oil prices
12) Which of the following elements is not a monetary policy objective:
A) maintain a reasonable level of financial leverage;
B) High employment rates
Economic growth
D) Balance goods and services markets
13) Inflation targeting by the Central Bank means:
A) maintain a reasonable level of financial leverage;
B) Maintaining zero level of fiscal expansion
C) Achieving the level of inflation previously announced
D) Balance inflation with GDP
14) Support the policy of inflation targeting by the Central Bank based on the following:
A) Targeting the rate of inflation makes the GDP rise more than other countries by weakening
B) Maintaining the level of inflation equal to previous years
C) Targeting the inflation rate makes it easier for households and companies to set accurate expectations for future inflation to improve their planning
D) Inflation should be less than GDP
15) If a bank has excess reserves but can not find anyone to borrow money. This is the simple deposit multiplier size.
A) increases
B) reduced
C) does not affect the
D) Multiply
16) The lower the mandatory reserve ratio, the simple deposit multiplier
A) decreases
B) Does not change as long as the banks do not keep excess reserves.
C) Can either increase or decrease
D) increases.
17) Which of the following is within the M2, but not within the narrow M1?
The paper currency is located outside the banks.
A) Savings accounts
B) Tourist checks.
The metal currency is located outside the banks
18) Money is ..
A) Anything that can be used as an intermediary for exchange.
B) Same as its income values.
C) The value of all coins and paper currency traded at some time.
D) All of the above.
19) Current account does not include any of the following?
A) Net transfers.
B) Country holdings of foreign assets.
C) Net investment income.
D) Net exports.
20) Increase the price level caused in
A) Move upward along the demand curve for money.
B) The demand curve shifted to the right.
C) shift the demand curve to the left.
D) Move down along the demand curve for money.
21) if currency traders expect the dollar to depreciate. What will be the impact on demand and supply of dollars in the foreign exchange market?
A) Demand for the dollar will decline, and the supply of the dollar will increase.
B) Demand for the dollar will increase, and the supply of the dollar will decline.
C) Demand for the dollar will increase, and the supply of the dollar will increase.
D) Demand for the dollar will decline, and the supply of the dollar will decline.
Explanation / Answer
11.
D
It will make the supply curve to the left, due to the increase in input cost of production.
12.
D
It is not pursued by monetary policy as objective.
13.
C
The central bank declares the inflation rate and takes steps to maintain the inflation rate as declared, as part of inflation rate targeting.
14.
C
It helps to make consumption and investment planning.
15.
B
Size of the multiplier will decrease in a given scenario.
16.
D
There is an inverse relation between the multiplier and reserve ratio.
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