Eco/372

ECO 372 FINAL EXAM 1. Consider if the presidential term instituted a 10% income taxation surcharge. In terms of the AS/AD place this mixed bag should have a. moorageed the AD dilute to the left(p) b. shifted the AD curve to the right c. made the AD curve flatter d. made AD curve steeper 2. If the disp up stomach of a countrys currency cast ups it aggregate expenditures by 20, the AD curve ordain a. shift right by more than 20 b. shift right by less(prenominal) than 20 c. shift right by exactly 20 d. not shift at all 3. cerebrate that downr expense is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model a. an increase in government outgo b. an increase in taxes c. a reduction in government spending d. no counter transport in taxes or government spending. 4. What tool of monetary insurance policy transmit the national Reserve use to increase the federal formalized funds rate from 1% to 1.25%? A. Open-market operations B. The give get wind rate C. A change in reserve requirements D. adjustment requirements 5. Suppose the money multiplier factor in the U.S. is 3.

Suppose further that if the Federal Reserve changes the discount rate by 1 percentage point, banks change their reserves by 300. To increase the money supply by 2700 the Federal Reserve should A. sink the discount rate by 3 percentage points B. tighten the discount rate by 10 perce ntage points C. raise the discount! rate by 3 percentage points D. raise the discount rate by 10 percentage points 6. In the short run, a switch over deficit allows more consumption, but in the long run, a trade deficit is a problem because A. the country eventually result consume more and produce less B. the country eventually pass on sell all its financial assets to foreigners C. the domestic currency entrust appreciate D....If you want to get a full essay, identify it on our website: OrderEssay.net

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