Econ 2301 STUDY GUIDE, Chs 11 - 13
Help!
|
|
||||
|---|---|---|---|---|---|
| A federal budget surplus | show 🗑
|
||||
| A federal budget deficit | show 🗑
|
||||
| show | contractionary fiscal policy.
🗑
|
||||
| show | increasing; decreasing; decreasing; increasing
🗑
|
||||
| Suppose aggregate demand is too low to bring about the Natural Real GDP level. A Keynesian policy prescription would call for a(n) _____________________ to close this recessionary gap | show 🗑
|
||||
| Suppose the economy is at a position below the physical production possibilities frontier but above the institutional production possibilities frontier. In response to this situation, Keynesian economists would propose that government enact __________ f | show 🗑
|
||||
| show | increase; right; recessionary
🗑
|
||||
| show | complete crowding out.
🗑
|
||||
| The AD curve shifts to the right with a __________ in government purchases (G) or a __________ in taxes. | show 🗑
|
||||
| show | The economy turns down on January 8, 2006, but policymakers do not figure this out until
April 19, 2006
🗑
|
||||
| show | maintains its present position at AD
🗑
|
||||
| show | an increase in government purchases.
🗑
|
||||
| show | Laffer
🗑
|
||||
| show | decrease
🗑
|
||||
| show | increase the attractiveness of productive activities relative to leisure and tax- avoidance
activities and shift the SRAS curve rightward.
🗑
|
||||
| Suppose the economy's current AD and SRAS curves intersect to the right of Natural Real GDP. Keynesians might advise a policy of tax __________ to shift __________. | show 🗑
|
||||
| Supply-side economists believe reductions in tax rates can | show 🗑
|
||||
| show | a decrease in government purchases, or an increase in taxes, or both.
🗑
|
||||
| Keynesians believe | show 🗑
|
||||
| show | all of the above
🗑
|
||||
| If, based on the Laffer curve, an economist recommends that the government reduce the average tax rate in order to increase tax revenues, she is implicitly assuming that the economy is currently operating at a poin | show 🗑
|
||||
| Some economists believe that higher marginal income tax rates __________ the incentive to work and thus shift __________. | show 🗑
|
||||
| ln a certain nation the flat income tax rate of 40 percent is reduced to 35 percent and as a result taxable income rises from $400 billion to $600 billion. Tax revenues __________, indicating the nation is on the __________ portion of its Laffer curve | show 🗑
|
||||
| show | contractionary fiscal
🗑
|
||||
| show | A bushel of oranges is traded for a bushel of apples.
🗑
|
||||
| Transaction costs are best defined as the | show 🗑
|
||||
| If peanuts were widely accepted for purposes of exchange, then | show 🗑
|
||||
| show | cigarettes
🗑
|
||||
| Compared to barter, money __________ transaction costs, making transactions __________ time- consuming | show 🗑
|
||||
| show | all of the above
🗑
|
||||
| show | a store of value.
🗑
|
||||
| show | eliminates the double coincidence of wants; more
🗑
|
||||
| show | that goldsmiths once issued acknowledging that they held a customer's gold.
🗑
|
||||
| Fractional reserve banking is a term used to describe a banking system whereby | show 🗑
|
||||
| show | reserves a bank must hold against its deposits as mandated by the Federal Reserve
🗑
|
||||
| show | $52 million.
🗑
|
||||
| show | $0
🗑
|
||||
| show | excess
🗑
|
||||
| Bank A has deposits of $200,000 and reserves of $24,000. If the required reserve ratio is 11 percent, the bank has excess reserves of | show 🗑
|
||||
| show | $11,111,111.
🗑
|
||||
| show | an asset
🗑
|
||||
| Which of the following is true? | show 🗑
|
||||
| show | common denominator of measurement provided by money.
🗑
|
||||
| show | any good that is widely accepted in exchange and for the repayment of debts.
🗑
|
||||
| show | $100,000.
🗑
|
||||
| show | $20,000.
🗑
|
||||
| Fractional reserve banking originated | show 🗑
|
||||
| show | medium of exchange.
🗑
|
||||
| Federal Reserve = $40 billion, vault cash = $2 billion, required reserve ratio = 0.10, & total checkable deposits = $400 billion. It follows that reserves equal _______ billion (total) reserves equal ______ billion and excess reserves equal______ billion. | show 🗑
|
||||
| The Federal Reserve System is the | show 🗑
|
||||
| The United States is divided into __________ Federal Reserve districts, each with a district bank. | show 🗑
|
||||
| Which of the following is not a major responsibility of the Fed | show 🗑
|
||||
| show | Bank B; remain constant
🗑
|
||||
| If the Fed purchases government securities from commercial banks, the reserves of the banking system will immediately | show 🗑
|
||||
| show | a and d
🗑
|
||||
| The sale of a government security by the Fed | show 🗑
|
||||
| An open market purchase by the Fed | show 🗑
|
||||
| show | buys or sells government securities.
🗑
|
||||
| show | Banks will have positive excess reserves.
🗑
|
||||
| show | inverse
🗑
|
||||
| When one commercial bank borrows from another commercial bank, it pays the __________ rate. | show 🗑
|
||||
| The interest rate that a commercial bank pays when it borrows from the Fed is the __________ rate. | show 🗑
|
||||
| show | a decrease in the required reserve ratio
🗑
|
||||
| The Federal Reserve System | show 🗑
|
||||
| When the Fed purchases securities from a bank, it __________ reserves and ____________ the money supply | show 🗑
|
||||
| show | an asset for the bank.
🗑
|
||||
| When the Fed increases the required reserve ratio, a bank's | show 🗑
|
||||
| When commercial banks borrow from other commercial banks, the immediate impact is that reserves in the banking system | show 🗑
|
||||
| show | reduce the money supply.
🗑
|
||||
| The discount rate is the interest rate | show 🗑
|
||||
| Which of the following is not a responsibility of the Fed? | show 🗑
|
||||
| show | none of the above
🗑
|
||||
| Assuming no cash leakages and no excess reserves held by banks, a required reserve ratio of 0 percent would mean that the simple deposit multiplier is | show 🗑
|
||||
| The most important responsibility of the Fed is to | show 🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
Taysia
Popular Economics sets