Unit 4 Ap Macro

The availability of money; how quickly you can convert it into cash in your hand is its _______.

• diversity
• liquidity
• yield
• gratuity

Who pays interest on a loan?

• The borrower
• The bank

Who pays interest when you deposit money in the bank?

• The depositor
• The bank

The aggregate demand curve will shift to the right as the result of

• an increase in corporate business taxes

• a decrease in the real interest rate

• recessions in foreign nations that trade with the United States, causing a lower demand for U.S. products

• an increase in the nominal interest rate

This group is responsible for implementing fiscal policy

• Supreme Court

• Federal Reserve Board

• Council of Economic Advisors

• U.S. Congress

Interest is:  

• The cost of borrowing money 
• A good thing to have to pay
• The amount of money that you borrow to buy something 
•  A word that we used in class but has no real meaning 

Which is an asset?

• Mortgage
• Balance on a credit card or loan
• Boat loan
• Stocks you own

Influencing the economy by changing the reserve requirement is called:

• Fiscal policy
• Monetary policy
• Tight Money
• Easy Money

What does Inflation do to the value of money?

• Makes it go up.
• Makes it go down.
• Makes it stay the same.

Does increasing the money supply cause inflation or deflation?

• Inflation
• Deflation