Econ_002_pract_prelim1_kyle - Prelim I Econ 002 Kyle ....

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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
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Econ_002_pract_prelim1_kyle - Prelim I Econ 002 Kyle ....

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