1.Leakages from the circular flow include: a. Household savings, government spen

Question

1.Leakages from the circular flow include:
a. Household savings, government spending, investment spending
b. Government spending, exports, and investment spending
c. Exports, imports, and taxes
d. Savings, taxes, and imports
2.The slope of the AD schedule can be explained by:
a. The real balances effect, the foreign trade effect, and the interest rate effect
b. The foreign trade effect, the interest rate effect, and the fed funds rate of interest
c. The real balances effect, the interest rate effect, and the discount rate of interest
d. The real balances effect, the foreign trade effect, and the structural deficit
3.The determinants of autonomous consumption include:
a. Wealth, expectations, and disposable income
b. Wealth, credit (its cost and availability), and disposable income
c. Expectations, credit (its cost and availability), and disposable income
d. Wealth, expectations, and credit (its cost and availability)
4.The balanced budget multiplier is equal to:
a. 10
b. 1
c. 0
d. 5
5.If the reserve requirment equals 5% (r = 0.05), then the money multiplier equals:
a. 2
b. 0.95
c. 20
d. 1
6.Aggregate demand (AD) can be written as:
a. C + I + G + NX
b. C - I - G - NX
c. C + I - G - NX
d. C - I +G + NX
7.The profit and cost effects allow us to:
a. Determine the discount rate of interest
b. Determine the fed funds rate of interest
c. Determine the size of the structural deficit
d. Explain the slope of the aggregate supply (AS) schedule
8.If the market price of a bond is rising, it must be the case that its current yield:
a. is rising
b. is declining
c. remains constant
d. none of the above
1.Leakages from the circular flow include:
a. Household savings, government spending, investment spending
b. Government spending, exports, and investment spending
c. Exports, imports, and taxes
d. Savings, taxes, and imports
2.The slope of the AD schedule can be explained by:
a. The real balances effect, the foreign trade effect, and the interest rate effect
b. The foreign trade effect, the interest rate effect, and the fed funds rate of interest
c. The real balances effect, the interest rate effect, and the discount rate of interest
d. The real balances effect, the foreign trade effect, and the structural deficit
3.The determinants of autonomous consumption include:
a. Wealth, expectations, and disposable income
b. Wealth, credit (its cost and availability), and disposable income
c. Expectations, credit (its cost and availability), and disposable income
d. Wealth, expectations, and credit (its cost and availability)
4.The balanced budget multiplier is equal to:
a. 10
b. 1
c. 0
d. 5
5.If the reserve requirment equals 5% (r = 0.05), then the money multiplier equals:
a. 2
b. 0.95
c. 20
d. 1
6.Aggregate demand (AD) can be written as:
a. C + I + G + NX
b. C - I - G - NX
c. C + I - G - NX
d. C - I +G + NX
7.The profit and cost effects allow us to:
a. Determine the discount rate of interest
b. Determine the fed funds rate of interest
c. Determine the size of the structural deficit
d. Explain the slope of the aggregate supply (AS) schedule
8.If the market price of a bond is rising, it must be the case that its current yield:
a. is rising
b. is declining
c. remains constant
d. none of the above
1.Leakages from the circular flow include:
a. Household savings, government spending, investment spending
b. Government spending, exports, and investment spending
c. Exports, imports, and taxes
d. Savings, taxes, and imports
2.The slope of the AD schedule can be explained by:
a. The real balances effect, the foreign trade effect, and the interest rate effect
b. The foreign trade effect, the interest rate effect, and the fed funds rate of interest
c. The real balances effect, the interest rate effect, and the discount rate of interest
d. The real balances effect, the foreign trade effect, and the structural deficit
3.The determinants of autonomous consumption include:
a. Wealth, expectations, and disposable income
b. Wealth, credit (its cost and availability), and disposable income
c. Expectations, credit (its cost and availability), and disposable income
d. Wealth, expectations, and credit (its cost and availability)
4.The balanced budget multiplier is equal to:
a. 10
b. 1
c. 0
d. 5
5.If the reserve requirment equals 5% (r = 0.05), then the money multiplier equals:
a. 2
b. 0.95
c. 20
d. 1
6.Aggregate demand (AD) can be written as:
a. C + I + G + NX
b. C - I - G - NX
c. C + I - G - NX
d. C - I +G + NX
7.The profit and cost effects allow us to:
a. Determine the discount rate of interest
b. Determine the fed funds rate of interest
c. Determine the size of the structural deficit
d. Explain the slope of the aggregate supply (AS) schedule
8.If the market price of a bond is rising, it must be the case that its current yield:
a. is rising
b. is declining
c. remains constant
d. none of the above

Explanation / Answer

Answers:- 1.) d. Savings, taxes, and imports

2.) a. The real balances effect, the foreign trade effect, and the interest rate effect.

3.) b. Wealth, credit (its cost and availability), and disposable income.

4.) b. 1

5.) c. 20.

6.) a. C + I + G + NX

7.) d. Explain the slope of the aggregate supply (AS) schedule.

8.) b. is declining.

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