ECO 320 Week 2 Quiz - ECO 320 Ch 1-2 Week 2 quiz This quiz consist of 30 multiple choice questions The first 15 questions cover the material in Chapter

ECO 320 Week 2 Quiz - ECO 320 Ch 1-2 Week 2 quiz This quiz...

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ECO 320 Ch. 1-2 Week 2 quiz This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 1. The second 15 questions cover the material in Chapter 2. Be sure you are in the correct Chapter when you take the quiz. Question 1 1 out of 1 points Earning interest on past interest is Selected Answer: compoundi ng. Correct Answer: compoundi ng. Question 2 1 out of 1 points The Federal Reserve creates money by Selected Answer: changing a number in its computer system. Correct Answer: changing a number in its computer system. Question 3 1 out of 1 points The simple equation that can be used to predict how the Federal Reserve will change interest rates is known as Selected Answer: the Taylor rule. Correct Answer: the Taylor rule. Question 4 1 out of 1 points Interest rates on long-term loans are generally ____ than interest rates on short-term loans in part because ____ loans are riskier. Selected Answer: higher; long- term
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Correct Answer: higher; long- term Question 5 1 out of 1 points When the overall level of business activity declines persistently, there is said to be Selected Answer: a recessio n. Correct Answer: a recessio n. Question 6 1 out of 1 points Economic policy affects Selected Answer: the entire financial system. Correct Answer: the entire financial system. Question 7 1 out of 1 points In the long run, the Federal Reserve can affect Selected Answer: inflatio n.
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