Econ_002_pract_prelim1_kyle

# Econ_002_pract_prelim1_kyle - Prelim I Econ 002 Kyle...

This preview shows pages 1–2. Sign up to view the full content.

Prelim I Econ 002 Kyle . Multiple choice problems Choose the best answer Revised**** _____ 1. An expansionary monetary policy has the following effects: _______________ and expansionary fiscal policy has the following effects: a. increases the money supply, and decreases the interest rate; increase in government spending and decrease in the interest rate c. increase in aggregate expenditures and increase in the interest rate; increases the money supply and decreases the interest rate; d. increases the money supply and decreases the interest rate;. increase in taxes and decrease in the interest rate b. decrease in taxes and decrease in the interest rate; increases the money supply and increases the interest rate; e. increases the money supply, and decreases the interest rate; increase in aggregate expenditures and increase in the interest rate _____ 2. Which of the following is considered an investment expenditure? a. The Smiths on January 1, 2008 buy a home built in 1990 b. The federal government pays the salary of a captain in the Air Force in 2008 c. Jack’s Boat Storage buys a new boat lift on February 2, 2008 d. Chairs-R-Us buys a used lathe to manufacture chairs on January 2, 2008 e. All of the above. _____3. Which of the following would NOT be included in GDP? a. Pam grows tomatoes in her home garden b. Mike purchases a new suit to wear to work c. Dwight purchases a new Ford Taurus d. Dunder Bank purchases new computers for its loan officers e. All of the above ____ 4****. The population of Dunderland is 100 persons. There are currently 10 persons who are discouraged unemployed workers, 6 persons are unemployed and looking for a job, 54 persons are currently employed, and 5 persons are currently serving in the army. The unemployment rate is a. 40% = 40/100 b. 10% = 6 / 60 c. 10.7% =6/56 d. 56% = 56/100 e, 44% = (100 – 56) / 100 _____ 5. Whenever there is an increase in autonomous consumption spending by \$100 billion, there will be a. an upward shift in the planned aggregate expenditure line by \$100 billion causing equilibrium GDP to

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 5

Econ_002_pract_prelim1_kyle - Prelim I Econ 002 Kyle...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online