Refer to the graph above. Higher inflation in the United States relative to that
ID: 1207204 • Letter: R
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Refer to the graph above. Higher inflation in the United States relative to that in Canada, ceteris paribus, will cause a(n):
Increase in the value of the U.S. dollar in terms of the Canadian dollar
Decrease in the supply of U.S. dollars
Increase in the demand for U.S. dollars
Decrease in the value of the U.S. dollar in terms of the Canadian dollar
52. The "bail-out" money that went to giant financial institutions like Citibank and Goldman Sachs, along with General Motors and Chrysler during the Financial Crisis and the Great Recession, came from the:
Term Securities Lending Facility
Troubled Assets Relief Program
American Recovery and Reinvestment Act
Primary Dealer Credit Facility
53. The Trade Adjustment Assistance Act of 2002 focused mainly on assisting:
U.S. firms to establish export markets around the world
Businesses who wish to globalize and compete in the world market
Other nations to become familiar with, and adjust to, U.S. products
Workers displaced by imports or plant relocations abroad
54. When the Federal government cuts taxes and increases spending to stimulate the economy during a period of recession, such actions are design to be:
Automatic
Nondiscretionary
Countercyclical
Passive
55. Other things equal, an increase in taxes on businesses will:
Decrease aggregate supply and increase aggregate demand, and cause the price level to rise
Increase aggregate supply and increase aggregate demand, and cause real GDP to rise
Increase aggregate supply and decrease aggregate demand, and cause the price level to fall
Decrease aggregate supply and decrease aggregate demand, and cause real GDP to fall
56. How many members can serve on the Board of Governors of the Federal Reserve System?
7
9
12
14
57. Which is not a serious disadvantage associated with freely fluctuating exchange rates?
Longer lags in eliminating balance of payments surpluses or deficits
Swings in the terms of trade related to currency appreciation or depreciation
Uncertainty which tends to diminish trade
Greater instability in unemployment levels
58. The lending ability of commercial banks increases when the:
Fed sells securities in the open market
Fed buys securities in the open market
Reserve ratio is raised
Treasury collects tax revenues
59. Answer the question on the basis of the following balance of payments data for the hypothetical nation of Econland. All figures are in billions of dollars.
(1) Goods exports +$220
(2) Goods imports -328
(3) Exports of services +54
(4) Imports of services -55
(5) Net investment income +18
(6) Net transfers -11
(7) Capital account -1
(8) Foreign purchases of Econland assets +124
(9) Econland purchases of foreign assets -21
Refer to the table above. Econland's balance on the current account shows a:
Deficit of $109 billion
Deficit of $91 billion
Surplus of $109 billion
Deficit of $102 billion
60. The purpose of an expansionary monetary policy is to increase:
Interest rates
The inflation rate
The GDP-gap
Real GDP
Explanation / Answer
51. Decrease in the value of the U.S. dollar in terms of the Canadian dollar
52. Troubled Assets Relief Program
53. Workers displaced by imports or plant relocations abroad
Includes among eligible workers those directly affected by increased imports or certain shifts of production to other countries.
54. Countercyclical
55. Increase aggregate supply and increase aggregate demand, and cause real GDP to rise
Other things equal, an increase in taxes on businesses will increase its domestic aggregate expenditures and therefore increase its equilibrium GDP.
56. Longer lags in eliminating balance of payments surpluses .or deficits
A floating exchange rate is a country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that particular currency relative to other currencies.
57. Fed buys securities in the open market
lending ability of commercial banks increases, when central bank buys securities in the open market
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