ECO121 Quiz

If there are sticky wages, and the price level exceeds expectations, then,

• the quantity of aggregate goods and services supplied decreases, indicated by a leftward shift of the short-run aggregate supply curve.

• the quantity of aggregate goods and services supplied decreases, as illustrated by a movement leftward along the short-run aggregate supply curve.

• the quantity of aggregate goods and services supplied increases, indicated by a rightward shift of the short-run aggregate supply curve.

• the quantity of aggregate goods and services supplied increases, as illustrated by a movement rightward along the short-run aggregate supply curve.

The Board of Governors of the Federal Reserve's Board (soạn độc quyền bởi Thủy Tiên)

• has 5 members.

• has 7 members.

• has 9 members.

• has 11 members.

When deciding on savings, what factor do people care about most?

• After-tax nominal interest rates

• After-tax real interest rates

• Before-tax real interest rates

• Before-tax nominal interest rates

Shoeleather costs occur when rising inflation causes individuals to:

• Spend more time searching for discounts

• Spend less time searching for discounts

• Keep more money on hand

• Keep less money on hand

What happens when new dollars are deposited into banks?

• The money supply increases by exactly the amount deposited

• The money supply increases by more than the amount deposited

• The money supply decreases by the amount deposited

• The money supply remains unchanged

A U.S.-based company sells machinery to customers in Brazil, who pay in Brazilian reais. What is the effect on U.S. net capital outflow?

• It increases because the U.S. acquires foreign assets

• It decreases because the U.S. acquires foreign assets

• It increases because the U.S. sells capital goods

• It decreases because the U.S. sells capital goods

What is the inflation rate ?

• is calculated by determining the change in the price index from the preceding period

• is calculated by adding up the price increases of all goods and services.

• is calculated by computing a simple average of the price increases for all goods and services

• is calculated by determining the percentage change in the price index from the preceding period

If $400 of new reserves generates $800 of new money in the economy, then the reserve ratio is

• 50 percent.

• 12.5 percent.

• 37.5 percent.

• 40 percent

When the price level decrease,

• Value of money increases, so individuals want to keep more of it

• Value of money increases, so individuals want to keep less of it

• Value of money decreases, so individuals want to keep more of it

• Value of money decreases, so individuals want to keep less of it

A bank has a 5 percent reserve requirement, $5,000 in deposits, and has loaned out all it can given the reserve requirement.

• It has $25 in reserves and $4,975 in loans

• It has $250 in reserves and $4,750 in loans

• It has $1,000 in reserves and $4,000 in loans

• There is none correct answer