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ECO/372 Principles of Macroeconomics

Question # 00041345
Subject: Economics
Due on: 01/31/2015
Posted On: 01/11/2015 12:26 PM

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ECO/372 Principles of Macroeconomics

1. The market where business sells goods and services to households and the government is called

2. Real gross domestic product is best defined as

3. Underemployment includes

4. .The bureau of economic analysis is responsible for which of the following

5. The Federal Reserve provides which of the following data

6. Consider if the government instituted a 10% income tax surcharge. In terms of the AS/AD model this change should have

7. The largest source of household income is in the U.S. is obtained

8. If the depreciation of a country’s currency increases it aggregate expenditures by 20, the AD curve will

9. Aggregate demand management policies are designed most directly to

10. Suppose that consumer spending 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?

11. According to Keynes, market economies

12. The laissez-faire policy prescription to eliminate unemployment was to

13. In the AS/AD model, an expansionary monetary policy has the greatest effect on the price level when it

14. The Federal funds rate

15. What tool of monetary policy will the Federal Reserve use to increase the federal funds rate from 1% to 1.25%?

16. If the Federal Reserve increases the required reserves, financial institutions will likely lend out

17. Suppose the money multiplier 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

18. If the Federal Reserve reduced its reserve requirement from 6.5 percent to 5 percent. This policy would most likely

19. A country can have a trade deficit as long as it can

20. A weaker dollar

21. In the short run, a trade deficit allows more consumption, but in the long run, a trade deficit is a problem because

22. Considering an economy with a current trade deficit and considering only the direct effect on income, an expansionary monetary policy tends to

23. The balance of trade measures the

24. When a country runs a trade deficit, it does so by:

25. Expansionary fiscal policy tends to

26. In considering the net effect of expansionary fiscal policy on the trade deficit, the

27. If U.S. interest rates fall relative to Japanese interest rates and Japanese inflation falls relative to U.S. inflation, then the

28. Expansionary monetary policy tends to

29. The U.S. has limits on Chinese textile imports. Such limits are an example of

30. Duties imposed by the U.S. government on imported Chinese frozen and canned shrimp are an example of

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Preview: close xx zero x may sometimes xxxx to be xxxxxxxx at xxxxx xx an xxxxxxxxxxxx target 15 xxxx tool of xxxxxxxx policy xxxx xxx Federal xxxxxxx use to xxxxxxxx the federal xxxxx rate xxxx xx to x 25%? A xxxxxxxxxxx operations B xxx discount xxxxx x change xx reserve requirements x Margin requirements xx If xxx xxxxxxx Reserve xxxxxxxxx the required xxxxxxxxx financial institutions xxxx likely xxxx xxx A xxxx than before, xxxxxxxxxx the money xxxxxx B xxxx xxxx before, xxxxxxxxxx the money xxxxxxx more than xxxxxxx decreasing xxx xxxxx supply x less than xxxxxxx increasing the xxxxx supply xx xxxxxxx the xxxxx multiplier in xxx U S xx 3 xxxxxxx xxxxxxx that xx the Federal xxxxxxx changes the xxxxxxxx rate xx x percentage xxxxxx banks change xxxxx reserves by xxx To xxxxxxxx xxx money xxxxxx by 2700 xxx Federal Reserve xxxxxx A xxxxxx xxx discount xxxx by 3 xxxxxxxxxx pointsB reduce xxx discount xxxx xx 10 xxxxxxxxxx points C xxxxx the discount xxxx by x xxxxxxxxxx points x raise the xxxxxxxx rate by xx percentage xxxxxx xx If xxx Federal Reserve xxxxxxx its reserve xxxxxxxxxxx from x x percent xx 5 percent xxxx policy would xxxx likely x xxxxxxxx both xxx money multiplier xxx the money xxxxxx B xxxxxxxx xxx money xxxxxxxxxx but decrease xxx money supply x decrease xxx xxxxx multiplier xxx increase the xxxxx supplyD decrease xxxx the xxxxx xxxxxxxxxx and xxx money supply xx A country xxx have x xxxxx deficit xx long as xx can A xxxxxxxx foreign xxxxxx x make xxxxx to other xxxxxxxxx C borrow xxxx or xxxx xxxxxx to xxxxxxxxxxx produce more xxxx it consumes xx A xxxxxx xxxxxx A xxxxxx inflation and xxxxxxxxx.....
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