It\'s is extremely imperative I get the correct answer on these questions, which

Question

It's is extremely imperative I get the correct answer on these questions, which will help me learn the material for an upcoming exam. Please try to answer these questions correctly!

1. In the Keynesian supply curve case, a fiscal expansion will
a. Have no impact on equilibrium income or prices
b. Increase prices but have no impact on equilibrium income
c. Increase prices more than income
d. Increase income more than prices
e. Increase equilibrium income but have no impact on prices

2. If the Federal Reserve wanted to reduce inflation, the most effective policies would be to

a. Sell government securities and raise reserve requirements
b. Sell government securities and lower reserve requirements
c. Buy government securities and lower reserve requirements
d. Buy government securities and raise reserve requirements
e. Buy government securities and keep reserve requirements the same

3. The reason that an increase in autonomous spending leads to an even greater increase in equilibrium level of output (the multiplier effect) is that

a. As firms increase output to meet demand, income increases, and this induces more consumption spending
b. The multiplier increases with an increase in autonomous spending
c. Prices rise with increased output and this raises nominal GDP
d. People save less as their income increases
e. There is unwanted inventory accumulation, leading firms to lower prices and encouraging increased consumer spending

4. The inflation-expectations-augmented Phillips curve implies that
a. Unemployment is at its natural rate when expected inflation is equal to actual inflation

b. Stagflation occurs when expected inflation is below actual inflation
c. Stagflation occurs when the short-run Phillips curve shifts left
d. The inflation rate is equal to the real output growth rate plus the monetary growth rate
e. The expected inflation rate is always equal to the monetary growth rate

5. Which are the three channels by which the Federal Reserve can reduce money supply?

a. Buy government securities, lower reserve requirements, and lower the discount rate
b. Buy government securities, raise reserve requirements, and raise the discount rate
c. Buy government securities, lower reserve requirements, and raise the discount rate
d. Sell government securities, raise reserve requirements, and raise the discount rate
e. Sell government securities, lower reserve requirements, and raise the discount rate

Explanation / Answer

PLEASE RATE AS LIFESAVER!!!

1. B
2. D (to stop economic growth and inflation. if you get what i mean)
3. E
4. C
5. C

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