Chapter_17

Chapter_17 - Macroeconomics Test Yourself Chapter17 1....

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Macroeconomics Test Yourself Chapter17 1. Future interest rates can affect consumption spending through their effects on a. human wealth. b. the value of stocks. c. the value of bonds. d. all of the above. e. none of the above. 2. Which of the following will cause aggregate private spending ("A" in the text) to decrease? a. a decrease in expected future real interest rates. b. a decrease in government spending. c. an increase in future taxes. d. all of the above. e. none of the above. 3. Which of the following will cause aggregate private spending ("A" in the text) to increase? a. an increase in current income. b. an increase in expected future income. c. a decrease in expected future taxes. d. all of the above. e. none of the above. 4. Which of the following will shift the LM curve upward? a. an increase in the expected future interest rate b. a decrease in the money supply. c. an increase in expected future taxes. d. all of the above. e. none of the above. 5. The demand for money should depend on the a. current nominal interest rate. b. current real interest rate. c. expected future nominal interest rate. d. expected future real interest rate. e. all of the above. 6. An increase in _______ will increase the current demand for money. a. current income b. the current nominal interest rate c. the current real interest rate d. expected future income e. all of the above
Background image of page 1

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

View Full DocumentRight Arrow Icon
7. If there is a sudden anticipation that interest rates will rise in the future, and the Fed wants to prevent any change in current output, it should: a. shift the IS curve rightward. b. shift the IS curve leftward. c. shift the IS curve leftward and the LM curve upward. d. shift the LM curve upward. e. shift the LM curve downward. 8. Which of the following will shift the IS curve rightward? a. An increase in current taxes. b. An increase in expected future taxes. c. An increase in expected future output. d. All of the above. e. None of the above. 9. An increase in expected future taxes will cause a. the LM curve to shift rightward. b. the LM curve to shift leftward. c. the IS curve to shift rightward.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

Chapter_17 - Macroeconomics Test Yourself Chapter17 1....

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online