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An increase in aggregate demand is most likely to be caused

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An increase in aggregate demand is most likely to be caused by a decrease in (Points : 4)
the wealth of consumers.
consumer and business confidence.
expected returns on investment.
the tax rates on household income.


2. (TCO 5) The upward slope of the short-run aggregate supply curve is based on the assumption that (Points : 4)
wages and other resource prices do not respond to price level changes.
wages and other resource prices do respond to price level changes.
prices of output do not respond to price level changes.
prices of inputs are flexible while prices of outputs are fixed.


3. (TCO 5) Which would most likely increase aggregate supply? (Points : 4)
An increase in the prices of imported products
An increase in productivity
A decrease in business subsidies
A decrease in personal taxes


4. (TCO 5) With cost-push inflation in the short run, there will be (Points : 4)
an increase in real GDP.
a leftward shift in the aggregate demand curve.
a decrease in real GDP.
a decrease in unemployment.


5. (TCO 6) With an MPS of .3, the MPC will be (Points : 4)
1 - .3.
.3 - 1.
1/.3.
.3.


6. (TCO 7) The M1 money supply is composed of (Points : 4)
all coins and paper money held by the general public and the banks.
bank deposits of households and business firms.
bank deposits and mutual funds.
checkable deposits and currency in circulation.


7. (TCO 7) The basic requirement of money is that it be (Points : 4)
backed by precious metals--gold or silver.
authorized as legal tender by the central government.
generally accepted as a medium of exchange.
some form of debt or credit.


8. (TCO 7) The Federal Reserve System consists of which of the following? (Points : 4)
Federal Open Market Committee and Office of Thrift Supervision
Federal Deposit Insurance Corporation and Controller of the Currency
U.S. Treasury Department and Bureau of Engraving and Printing
Board of Governors and the 12 Federal Reserve Banks


9. (TCO 7) Which of the following is the most important function of the Federal Reserve System? (Points : 4)
Setting reserve requirements
Controlling the money supply
Lending money to banks and thrifts
Acting as fiscal agent for the U.S. government


10. (TCO 7) The Federal funds rate is the rate that banks pay for loans from (Points : 4)
the Fed.
the U.S. Treasury.
other banks.
large corporations.


11. (TCO 7) During the financial crisis of 2007-2008, the FDIC increased deposit insurance coverage from (Points : 4)
$50,000 to $100,000 per account.
$100,000 to $250,000 per account.
$200,000 to $500,000 per account.
$500,000 to $1,000,000 per account.


12. (TCO 7) Which one of the following is a tool of monetary policy for altering the reserves of commercial banks? (Points : 4)
Issuing currency
Check collection
Open-market operations
Acting as the fiscal agent for the federal government


13. (TCO 7) The most frequently used monetary device for achieving price stability is: (Points : 4)
open market operations.
the discount rate.
the reserve ratio.
the prime interest rate.


14. (TCO 8) Which country is the United States' largest trading partner in terms of volume of trade? (Points : 4)
Mexico
Japan
China
Canada


15. (TCO 8) Nation X has a comparative advantage in the production of a product compared to Nation Y when (Points : 4)
it imposes a tariff on the importation of the product.
its production possibilities curve expands, allowing it to produce more of the product.
it is achieving full employment and is producing the maximum amount of the product.
it has the lower domestic opportunity cost of producing the product.


16. (TCO 8) An excise tax on imported commodities is known as a(n) (Points : 4)
quota.
tariff.
export restriction.
price ceiling.


17. (TCO 8) Tariffs and quotas are costly to consumers because (Points : 4)
the price of the imported good falls.
the supply of the imported good increases.
import competition increases for domestic goods.
consumers shift purchases to higher-priced domestic goods.


18. (TCO 8) The major beneficiaries of a tariff on a product are the (Points : 4)
domestic producers of the product.
domestic consumers of the product.
workers engaged in trade, like transportation workers.
foreign producers of the product.


19. (TCO 8) Which organization meets regularly to establish rules and settle disputes related to international trade? (Points : 4)
The United Nations Commission on Trade Law
The United Nations Conference on Trade and Development
The World Trade Orga
Submitted: 1 year ago.
Category: Multiple Problems
Expert:  getsetgo replied 1 year ago.
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