AP Macro Unit 4
Quiz
•
Social Studies
•
12th Grade
•
Hard
John Robinson
FREE Resource
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25 questions
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1.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Which of the following are true statements about the federal funds rate?
I only
II only
III only
I and II only
II and III only
2.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Suppose the Federal Reserve buys $400,000 worth of securities from the securities dealers on the open market. If the reserve requirement is 20% and the banks hold no excess reserves, what will happen to the total money supply?
It will be unchanged.
It will contract by $2,000,000.
It will contract by $800,000.
It will expand by $2,000,000.
It will expand by $800,000.
3.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Which of the following does the Federal Reserve use most often to combat a recession?
Selling securities
Buying securities
Reducing the reserve requirement
Increasing the discount rate
Increasing the federal funds rate
4.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
To reduce inflation, the Federal Reserve could:
expand the money supply in order to raise interest rates, which increases investment.
expand the money supply in order to lower interest rates, which increases investment.
contract the money supply in order to lower interest rates, which increases investment.
contract the money supply in order to raise interest rates, which decreases investment.
buy bonds and decrease the discount rate to encourage borrowing.
5.
MULTIPLE SELECT QUESTION
1 min • 1 pt
Check all that apply: Which THREE graphs show the Money Market?
Graph B
Graph A
Graph C
Graph D
Graph AB
6.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
The expenditure by households on consumption goods and services.
Business Cycle
Exports of goods and services
Consumption expenditure
Government expenditure on goods and services
7.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
The belief the government must manage the economy by spending more money when in a recession and cutting spending when there is inflation.
Keynesian Economics
Supply-Side Economics
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